Japan to fund up to $21 billion for two New York chip plants
In short
Japan will provide up to $21 billion for two planned semiconductor plants in Malta, New York, according to announcements reported by Korean outlets. GlobalFoundries will supply the technology and operate the facilities, with the first plant targeting production in 2029.
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Japan is to provide up to $21 billion for two planned semiconductor manufacturing plants in Malta, New York, under its investment agreement with the United States. GlobalFoundries will provide manufacturing technology and operate the facilities, according to company statements reported by Korean outlets. U.S. President Donald Trump announced the project on Truth Social on October 14 local time, describing it as a result of the countries' trade agreement. [ 2 , 4 , 10 , 11 ]
The first phase calls for about $10 billion to build a plant targeting production in 2029. Construction is expected to begin this year. GlobalFoundries said the first plant could produce about 900,000 300mm wafers a year. Another similarly sized facility would follow with roughly $10 billion of additional investment. Chosun Ilbo reported that the second plant remained conditional on further investment; together, the two would have annual capacity of about 1.8 million wafers. [ 2 , 6 , 8 , 10 ]
Japan's foreign ministry called the project the first semiconductor undertaking under the countries' investment agreement and said its aim was to build resilient supply chains in a sector important for economic security, Asia Economy reported. The plants are intended to make chips for vehicles, industrial equipment and communications infrastructure. The project is part of Japan's $550 billion U.S. investment commitment. Trump said it would create about 27,000 construction and supply-chain jobs and more than 1,000 skilled manufacturing jobs. [ 2 , 4 , 6 , 11 ]
Separately, reports described a revised allocation of $955 million in existing U.S. CHIPS Act subsidies for GlobalFoundries investments in silicon photonics, silicon germanium and advanced packaging. Korea Economic Daily and Hankook Ilbo reported that a separate agreement would give the U.S. Commerce Department about a 4% equity stake. The outlets distinguished that arrangement from the Japanese financing for the new plants. [ 8 , 10 ]
Why it matters
Japan's foreign ministry said the project aims to strengthen resilient semiconductor supply chains. The planned plants would produce chips used in vehicles, industrial equipment and communications infrastructure.
Key facts
- The project forms part of Japan's $550 billion U.S. investment commitment. [ 2 , 6 , 8 ]
- The first plant is planned to cost about $10 billion and begin production in 2029. [ 2 , 6 , 10 ]
- GlobalFoundries expects the first plant to produce about 900,000 300mm wafers annually. [ 2 , 6 , 8 ]
- A second plant of similar size is planned, subject to further investment. [ 2 , 6 , 10 ]
Confirmed by several sources
Still unclear
- The second factory remains dependent on additional investment. Chosun Ilbo explicitly describes it as conditional on further funding.