Japan to invest up to US$21 billion in GlobalFoundries plants in New York
The first factory is due to begin operating in 2029. A decision on the second is expected before the end of 2028 and will depend on demand.
GlobalFoundries announced on October 14 that Japan will provide up to US$21 billion for two chip factories in Malta, New York. The company will operate the facilities and supply their technology, with funding drawn from Japan’s US$550 billion investment commitment under its trade agreement with the Trump administration.
The company said about US$10 billion would accelerate work on the first 300mm factory, scheduled to start operating in 2029. Construction is expected to begin later in the year. Roughly another US$10 billion would support a second plant, with executives telling investors that a decision is expected before the end of 2028, Reuters reported. CEO Tim Breen told Bloomberg that proceeding would depend on market demand.
Reuters reported that Japanese interests and the US government would share ownership of the factories. Under a separate agreement, the Commerce Department will receive about 4% of GlobalFoundries’ equity. Breen told Reuters this would increase the government’s holding from 3% to 7%.
Each facility would expand annual US production capacity by about 900,000 300mm wafers. GlobalFoundries expects about 27,000 construction and ecosystem jobs, plus more than 1,000 manufacturing positions. The plants are intended to supply automotive, industrial and communications chips; Breen identified Renesas and Apple as early customers, Reuters reported.
Executives said GlobalFoundries would collect fees for at least 20 years, according to Reuters. Separately, the company will redirect US$955 million from its existing CHIPS Act award toward silicon photonics, silicon-germanium and advanced packaging at its Malta and Burlington, Vermont, facilities.
