Japan Designates GlobalFoundries to Operate New US Chip Sites

Japan has committed $20 billion to build two new semiconductor manufacturing facilities in the United States. These new sites are part of a bilateral trade agreement between the two nations, with GlobalFoundries selected to manage their operations.

This initiative constitutes a key component of a broader trade accord in which Japan will invest a total of $550 billion in exchange for reduced U.S. tariffs on Japanese exports. GlobalFoundries will develop the new facilities at its Malta, New York, campus. The project is designed to accelerate secure semiconductor manufacturing in the U.S., reinforce critical supply chains, and address rising demand across the automotive, industrial, and connected infrastructure sectors.

Japan will provide an initial $10 billion to accelerate the construction of a new 300mm semiconductor fab, which is projected to become operational in 2029. Once fully functional, it will contribute approximately 900,000 wafers to annual manufacturing capacity. A subsequent $10 billion investment will fund a second fab of equal capacity. The comprehensive project is expected to generate approximately 27,000 construction and ecosystem positions, alongside more than 1,000 highly skilled manufacturing roles in New York’s Capital Region.

GlobalFoundries has also reached an agreement with the U.S. Department of Commerce to reallocate $995 million from an existing CHIPS and Science Act award toward silicon photonics and related technologies. This move will expand manufacturing capacity for hardware that is increasingly vital to communications infrastructure and data centers. In a separate arrangement, the U.S. government will acquire an approximately 4% equity stake in GlobalFoundries, bringing its total ownership to 7%.