The GlobalFoundries plant in Essex Junction, Vt., has been awarded an additional $9.5 million in federal funding to support advanced chip production in Vermont.

The funding aims to boost manufacturing of GlobalFoundries’ gallium nitride chips, known as GaN, at its Vermont plant, according to a press release the company issued Wednesday.

It said the chip technology allows for higher performance and better energy efficiency across a range of uses, particularly those used in military technology.

“This strategic investment in critical technologies strengthens our domestic ecosystem and national security,” said Nicholas Martin, the company’s director of defense microelectronics activity. “In concert with key partners, this approach fortifies defense systems, empowering resilience and responsiveness.”

The new funding, from the U.S. Department of Defense’s Trusted Access Program Office, will support upgrades to GlobalFoundries’ manufacturing tools and boost production of advanced GaN chips that are designed to allow devices to connect more quickly to the internet, according to the press release.

The additional $9.5 million brings the total federal investment in the company’s GaN chips to $80 million since 2020 with the goal of full-scale GaN chip manufacturing, according to the release.

The GlobalFoundries plant in Essex Junction is one of the largest private employers in Vermont.

The plant, originally operated by IBM, is a key player in the semiconductor industry, manufacturing advanced chips used in various sectors, including defense and communications.

In February, the U.S. Department of Commerce awarded a $1.5 billion grant to GlobalFoundries to boost domestic chip production through the 2022 federal CHIPS and Science Act.

That funding was finalized last month.

The CHIPS initiative was designed to support the U.S. semiconductor industry by providing financial incentives for companies to expand production, reduce reliance on foreign chip manufacturers and strengthen national security.

While much of that funding went to other GlobalFoundries facilities, such as one in Malta, New York, $125 million was allocated to the Vermont plant to modernize its manufacturing and to enhance the production of chips for cars, phones and other devices.

The recent federal funding in Vermont comes after years of uncertainty surrounding the plant’s future.