Lockheed Martin and GlobalFoundries join forces for secure chip production.

Lockheed Martin has partnered with New York-based semiconductor manufacturer GlobalFoundries to produce chips critical to national security systems. The partnership will give GlobalFoundries an edge when applying for grants through the Chips Act, which sets aside $2 billion in grants specifically for microelectronics in defense systems. The Pentagon already awarded GlobalFoundries $117 million in Defense Production Act funding last year to produce 45-nanometer semiconductors in New York. The subsidies and tax incentives for microelectronics companies in the Chips Act are largely geared toward onshoring semiconductor production amid concerns China could disrupt the global supply chain.