Japan to Invest Up to $21 Billion in Two GlobalFoundries Chip Factories in New York
The plants, to be operated by GlobalFoundries, are tied to the US-Japan $550 billion investment arrangement; Renesas and Apple are named as likely early customers.
Japan plans to invest up to $21 billion in two semiconductor factories in New York that GlobalFoundries will operate, according to Reuters, with the U.S. government and Japanese interests set to jointly own the plants.
Deal details
- Capital: Japan would provide all of the investment, GlobalFoundries said, while the U.S. takes a stake in the new factories.
- Timeline: Construction of the first factory is scheduled to begin this year, with chip production expected in 2029. The partners will decide whether to build the second before the end of 2028.
- Scale: The first factory is expected to add capacity for about 900,000 300mm wafers a year and create more than 1,000 factory jobs.
- U.S. stake: The U.S. government will take a 4% stake in GlobalFoundries, lifting its total holding to about 7%. Abu Dhabi's Mubadala Investment remains the majority owner.
Customers
GlobalFoundries CEO Tim Breen said the company would manage customer relationships and that initial customers include Japan's Renesas Electronics and Apple. He said the company would like to give priority to U.S. and Japanese customers.
Context
The project falls under the arrangement struck last year in which Japan committed to invest $550 billion in the United States in return for lower U.S. tariffs on Japanese cars and other goods, from at least 25% to 15%. Under that arrangement, President Trump selects the projects Japan funds.
The "up to" wording matters: the second factory is not yet committed. The announcement follows a five-year interposer agreement between GlobalFoundries and TSMC disclosed last week.
