Technology & Science
Japan-backed GlobalFoundries plan targets two New York chip fabs
The company says Japan will fund a first fab expected in 2029 and a possible second facility. Reuters separately reported U.S.-Japan ownership of the plants; project-level terms have not been fully detailed.
Executive summary
- Japan would fund up to $21 billion: GlobalFoundries says Japan will provide up to $21 billion for two planned semiconductor fabs at its Malta, New York, campus. About $10 billion would accelerate the first 300mm fab, which the company expects to begin operating in 2029; another roughly $10 billion would fund a second fab.[1][2]
- Only the first facility has a stated 2029 target: GlobalFoundries described the second fab as a future investment. Reuters reported that the partners expect to decide whether to build it before the end of 2028. The two-project headline therefore does not mean both plants are approved or scheduled on the same timeline.[1][2]
- The ownership terms are not fully detailed: GlobalFoundries says a separate agreement gives Commerce about 4% equity in the chipmaker. Reuters separately reported that the factories would be jointly owned by the U.S. government and Japanese interests. The public company release does not explain the project-level ownership structure or how it relates to the corporate stake.[1][2][3]
GlobalFoundries said Oct. 14 that it had been selected to provide technology and operate two new semiconductor factories at its Malta, New York, campus under a U.S.-Japan initiative. The company said Japan would provide up to $21 billion in funding while GlobalFoundries contributes its technology and manufacturing operations. The announcement links the plan to the countries’ trade and investment agreement.[1][2]
The company expects about $10 billion to accelerate construction of a new 300-millimeter fab, which it says is expected to come online in 2029. Another approximately $10 billion would fund a second fab. Reuters reported that the partners expect to decide whether to proceed with the second plant before the end of 2028; neither the company release nor Reuters described it as already approved for construction.[1][2][3]
GlobalFoundries estimates that each fab could add roughly 900,000 wafers of annual U.S. manufacturing capacity when fully operational. The company also projects about 27,000 construction and related ecosystem jobs and more than 1,000 manufacturing jobs in New York. Those are company estimates for a multiyear buildout, not current openings or jobs already created.[1][3][2]
The press release describes the output as foundational semiconductors for automotive, industrial and connected-infrastructure markets. The announcement does not say these will be the most advanced logic chips used in leading-edge AI accelerators. GlobalFoundries is the selected technology provider and operator; the public release does not identify the Japanese funding entities or fully detail the investment’s financing structure.[1][2]
GlobalFoundries said a separate agreement gives the U.S. Department of Commerce equity of about 4% in the company. Reuters reported that the factories would be jointly owned by the U.S. government and Japanese interests, and that the federal stake in GlobalFoundries would rise from 3% to 7%. The company's release does not spell out the project-level ownership or explain how that structure relates to the equity stake; the two claims should not be treated as interchangeable.[1][2]
The company also said it agreed to amend an existing CHIPS and Science Act award, reallocating $955 million toward silicon photonics, silicon-germanium and advanced-packaging investments at its New York and Vermont sites. AP reported that GlobalFoundries said Japanese investment would allow federal support to shift to those other semiconductor areas. The new fabs’ full terms, the second plant’s go-ahead and the schedule beyond the first facility’s 2029 target remain to be established.[1][3][2]