GlobalFoundries to Build Two New York Chip Fabs With Up to $21 Billion Japanese Funding

what happened

GlobalFoundries plans to construct two new chip-manufacturing plants in New York under a U.S.-Japan initiative that provides up to $21 billion in funding. The Wall Street Journal, citing the company, reports the news.

The chipmaker said Wednesday that Japan will supply the money, a move it attributes to the trade and investment agreement President Trump reached with that country. Once fully operational, each facility is expected to produce about 900,000 300-millimeter wafers a year.

Japan's initial investment of about $10 billion will accelerate construction of the first fab, which is expected to come online in 2029. Another roughly $10 billion would fund the second fab. Both sites will be located at GlobalFoundries' campus in Malta, N.Y. Under a separate agreement, the U.S. Commerce Department will receive about a 4% equity stake in the company. The parties have also amended GlobalFoundries' existing CHIPS and Science Act award, reallocating $955 million to silicon photonics, silicon-germanium and advanced packaging at its Malta and Burlington, Vt. facilities.

why it matters

For markets, the deal highlights how government agreements and foreign capital are increasingly shaping where semiconductor production capacity is built in the United States. The Commerce Department's equity stake and the reallocation of CHIPS Act funds suggest that public support is becoming tied to specific projects.

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