Vermont’s Tech Hub secures almost $24M to advance local microchip manufacturing

By KLARABAUTERS

VtDigger

Published: 01-18-2025 7:00 PM

The U.S. Economic Development Administration is ramping up its investment in national microchip manufacturing, awarding $23.8 million to Vermont’s Tech Hub — a partnership between the University of Vermont, GlobalFoundries and the state — to advance local semiconductor manufacturing.

The investment aims to support technology projects that boost chip design and manufacturing of GlobalFoundries’ gallium nitride semiconductors, known as GaN, according to a Wednesday press release from the University of Vermont.

These projects include a center for start-ups to access GaN semiconductor design tools, an open access lab to test GaN-based devices and education programs to train students in microchip-making skills, according to the release.

The investment comes amid layoffs at GlobalFoundries’ Essex Junction plant.

“We have taken a set of focused actions that have impacted a small number of our workforce at GF Vermont,” spokesperson Gina DeRossi confirmed via text message. The company did not disclose the number of employees affected by the layoffs or any other additional details.

With the new funding, the Tech Hub plans to train more than 500 new workers in the microchip manufacturing industry and hopes to encourage over 6,000 K-12 Vermont students to explore STEM careers.

“This funding solidifies UVM as a leader in semiconductor research and workforce training,” UVM interim president Patricia Prelock said in a written statement. 

The grant awarded to Vermont’s Tech Hub is part of a larger federal funding effort. Announced by the Biden-Harris administration, the initiative distributed $210 million across six Tech Hubs to strengthen U.S. economic competitiveness and national security, according to a Tuesday press release from the U.S. Department of Commerce.

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“The Biden-Harris Administration’s $23 million investment in the Green Mountain State’s technological and economic future is a testament to our innovative leadership, world-renowned research institutions, and our record of excellence in manufacturing,” said U.S. Sen. Peter Welch, D-Vt, in a written statement.