Policy · Semiconductors
Japan to put up to $21 billion into two GlobalFoundries chip plants in New York
- From
- Government of Japan (Japan)
- Covers
- Two new GlobalFoundries-run chip plants, Malta, New York
- Value
- Up to $21B
- Status
- Announced. Groundbreaking for the first plant is expected in 2026, subject to final agreements, with production planned from 2029; the second depends on about $10B more.
- Date
- 2026-10-14
Under the $550 billion US–Japan investment program, Japan will provide the capital and GlobalFoundries will build and run two 300mm chip plants next to its Fab 8 in Malta, earning fees and licensing its technology. In a separate agreement, the US Commerce Department takes an equity stake of about 4% in GlobalFoundries itself. Together the plants could add up to about 1.8 million wafers a year of basic chips for cars, industrial equipment and telecom networks, and Renesas plans to use the capacity.
Why it matters
It is the first chip project under the $550 billion program, and it puts the money into factory capacity rather than company purchases. Equipment makers such as Tokyo Electron are expected to supply the plants. "Up to $21B" is a ceiling, not a committed total.
What was agreed
The Japanese and US governments said on October 15, 2026 (Japan time) that they had agreed to carry out the New York chip project under their Strategic Investment Initiative. JETRO counts it as the seventh project selected under the initiative and the first in semiconductors. Earlier selections included a synthetic diamond plant, small modular reactors and gas-fired power.
Only the first phase, about $10 billion for one 300mm fab, is firm. A second investment of roughly $10 billion for another fab is contemplated for later, which is how the total reaches up to $21 billion. Japan supplies the capital. GlobalFoundries contributes its process technology and operating know-how and is paid fees for building and running the plants and for licensing its technology; the company says it will also share in earnings over time.
METI said the aim is to expand capacity for mature-node chips and build a resilient US-Japan supply chain, and that Japanese companies should gain business supplying equipment and materials. GlobalFoundries' Japanese-language release referred to its long collaboration with Tokyo Electron.
Capacity, jobs and timeline
Each fab is designed for about 900,000 300mm wafers a year at full output. GlobalFoundries says the Malta site is permitted and ready for construction. The first fab could break ground this quarter, be ready for equipment in 2028 and produce wafers in 2029, subject to final agreements.
The company expects the project to support about 27,000 construction and related jobs and more than 1,000 skilled manufacturing jobs in New York's Capital Region. Apple, Cirrus Logic and General Motors were named alongside Renesas as customers or partners. Renesas had announced a wider strategic partnership with GlobalFoundries in February 2026.
Related US agreements
Under a separate agreement, the Commerce Department will take an equity stake of about 4% in GlobalFoundries itself. Reports differ on the government's resulting total holding. GlobalFoundries is majority-owned by Abu Dhabi's Mubadala.
Commerce and GlobalFoundries also agreed to amend the company's existing CHIPS Act award, redirecting $955 million to silicon photonics, silicon-germanium and advanced packaging at Malta and Burlington, Vermont. The company says the total award is unchanged.
What to watch
The size of GlobalFoundries' fees has not been disclosed, and the second fab's funding is not confirmed. The Times Union reported the company is also weighing a further fab at Malta later. One analyst quoted by TechTarget said staffing two more fabs on schedule, without draining workers from Fab 8, is the main practical challenge.
Sources
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