That's according to the Biden administration on Monday (February 19).

GlobalFoundries, the world's third-largest contract chipmaker, will build a new manufacturing facility in Malta, New York.

As well as expand existing operations there and in Burlington, Vermont, according to a preliminary agreement with the Commerce Department.

The grant will be accompanied by $1.6 billion in available loans, with the funding expected to generate $12.5 billion in overall potential investment across the two states.

Biden administration officials said the projects, funded under the CHIPS and Science Act, would generate more than 10,000 jobs over a decade.

The chips, as small as a fingernail, are used in a whole host of fields, including satellite and space communications and the defense industry, officials said.

That's as well as in everyday applications such as blind spot detection and collision warnings in cars and electric vehicles, along with wifi and cellular connections.

Commerce Secretary Gina Raimondo told reporters that GlobalFoundries' semiconductors are "essential chips to our national security".

She added that Malta's facility will now provide supplies to General Motors, helping to combat chip shortages that kept millions of cars from being manufactured during the global health crisis.

According to Raimondo, this is the government's third CHIPS announcement.

And her department planned to make several imminent funding awards from the government's $39 billion program to expand semiconductor manufacturing.