GlobalFoundries to Build 2 Chip Fabs in NY With Up to $21 Billion in Funding From U.S.-Japan Initiative

Kelly Cloonan

GlobalFoundries plans to build two new semiconductor-manufacturing facilities in New York under a U.S.-Japanese initiative providing up to $21 billion in funding.

The chip manufacturer said Wednesday that Japan would provide the investment, which it said was enabled by President Trump's trade-and-investment agreement with the country. The fabs aim to grow U.S. manufacturing capacity, with each expected to add about 900,000 300-millimeter wafers annually when fully operational, GlobalFoundries said.

GlobalFoundries that, under a separate agreement, the Commerce Department would receive about 4% equity in the company.

The plans under the U.S.-Japan initiative include an initial investment from Japan of about $10 billion to speed up construction of a fab that's expected to come online in 2029. An additional investment of about $10 billion would fund a second fab. Both facilities would be at GlobalFoundries' Malta, N.Y., site.

GlobalFoundries and the U.S. Department of Commerce also agreed to amend the company's existing award under the Creating Helpful Incentives to Produce Semiconductors and Science Act to reallocate $955 million to boost its investments in silicon photonics, silicon-germanium and advanced packaging at its facilities in Malta, N.Y., and Burlington, Vt.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

October 14, 2026 09:36 ET (13:36 GMT)