GlobalFoundries plans Japan-funded New York fabs in project worth up to $21 billion

GlobalFoundries announced on October 14 that it would build new semiconductor factories in New York in cooperation with Japanese companies under an investment framework agreed by the Japanese and U.S. governments. The project could reach $21 billion, according to reports by Tokyo Shimbun, Nikkei and Mynavi News. It forms part of Japan's $550 billion U.S. investment and financing commitment made during tariff negotiations. [ 2 , 3 , 4 ]

Mynavi News reported that Japan would provide the funding while GlobalFoundries supplied technology, manufacturing expertise and factory operations. An initial investment of roughly $10 billion would fund a 300mm wafer fab at the company's Malta site, where its existing Fab 8 is located. Construction is scheduled to begin in 2026 on a permitted site, with operations planned for 2029. A second fab would be built if roughly $10 billion in additional investment proceeds. [ 3 ]

At full operation, the first fab is expected to add annual capacity of about 900,000 300mm wafers. A second could add up to another 900,000, bringing the total to as much as 1.8 million a year, Mynavi News reported. The new capacity is intended for chips used in vehicles, industrial equipment and communications infrastructure. Renesas plans to use it as an extension of its manufacturing footprint, while Tokyo Electron will cooperate on equipment and process technology. [ 3 ]

Tokyo Shimbun reported that the project aims to strengthen Japanese and U.S. supply chains against geopolitical risks, including a Taiwan contingency. It also described disaster-risk diversification as a benefit for Japan after the July Kumamoto earthquake halted some chip factories in Kyushu. TBS NEWS DIG reported that President Donald Trump welcomed the investment on social media and presented it as an achievement of his policies. [ 2 , 5 ]