Japan to Fund Up to $21 Billion for Two New GlobalFoundries Chip Fabs in New York
GlobalFoundries says it will build and run two new chip factories at its Malta, N.Y., site under a U.S.-Japan deal. Japan supplies the money (up to $21 billion), and the U.S. government gets equity.
By 1EyeAI Desk ·
GlobalFoundries (GF) announced on Wednesday (Oct. 14, 2026) that it was selected as technology provider and operator for two new semiconductor fabs at its Malta, New York, site under a U.S.-Japan initiative providing up to $21 billion. GF says the initiative was enabled by President Trump’s trade and investment agreement with Japan, and that Japan will provide the investment.
The plan (company figures): About $10 billion goes to a first 300mm fab, expected online in 2029. About $10 billion more would fund a second fab. GF says the first fab should add about 900,000 300mm wafers a year of U.S. capacity when fully running, and a second about the same. It projects about 27,000 construction and ecosystem jobs and more than 1,000 manufacturing jobs. GF expects to break ground later this year on a site it says is permitted and shovel-ready. The fabs target automotive, industrial and connected-infrastructure chips, not leading-edge AI accelerators.
Government stakes: GF says it agreed with the Commerce Department to amend its existing CHIPS Act award, reallocating $955 million toward silicon photonics, silicon-germanium and advanced packaging in Malta and Burlington, Vermont. GF says these technologies are increasingly critical to data centers. In a separate agreement, Commerce will receive about 4% equity in GF. Reuters reports that the new fabs will be jointly owned by the U.S. government and Japanese interests, and that, per GF CEO Tim Breen, the stake brings total U.S. ownership of GF to about 7%. Reuters says the deal is part of Japan’s $550 billion U.S. investment pledge, which was tied to lower U.S. tariffs on Japanese goods.
Customers (reported): Breen told Reuters that initial customers include Renesas and Apple. Both companies, along with Cirrus Logic and GM, are quoted supporting the project in GF’s release.
What this means for you: You won’t see anything change soon, since the first fab isn’t due until 2029. Longer term, more U.S.-made chips for cars, phones and networking gear could ease the kind of supply crunch that hit car production earlier this decade. If you work in chip manufacturing or live in New York’s Capital Region, watch for GF hiring and the groundbreaking date.