GlobalFoundries’ $21B Japan-Funded U.S. Fab Deal
According to GlobalFoundries, the U.S. semiconductor foundry announced on October 14 that it has been selected as the technology provider and operator for two new 300mm (12-inch) wafer fabrication plants under a U.S.-Japan joint initiative. The company plans to build the facilities next to its existing campus in Malta, New York, with total investment of up to $21 billion funded entirely by Japan. The project marks the first major semiconductor manufacturing investment disclosed under Japan's $550 billion U.S. investment commitment announced in July 2025.
Two New Fabs to Add 1.8 Million Wafers in Annual Capacity
The project will proceed in two phases. The first fab, requiring approximately $10 billion in investment, is scheduled to begin construction in 2026 and enter production in 2029. A second fab will follow with a similar investment.
Both facilities will focus on logic chips for computing applications. Once fully operational, each fab is expected to produce approximately 900,000 300mm wafers annually, bringing total additional capacity to 1.8 million wafers. GlobalFoundries CEO Tim Breen said the expansion could increase U.S. wafer fabrication capacity by approximately 10%.
The project is expected to create around 27,000 construction and semiconductor ecosystem jobs in the New York Capital Region, along with more than 1,000 advanced manufacturing positions.
Japan to Fund the Project as GlobalFoundries Leads Operations
The investment forms part of the U.S.-Japan economic agreement announced in July 2025, under which Japan committed up to $550 billion in investments, loans and loan guarantees for the United States. The latest project expands the initiative beyond energy infrastructure into strategic technology manufacturing.
Japan will provide the funding, while GlobalFoundries will contribute its process technologies, manufacturing expertise and operational capabilities. The company will also continue working with the U.S. Department of Commerce to redirect $955 million in previously awarded CHIPS Act funding toward silicon photonics, silicon-germanium (SiGe) and advanced packaging capacity in New York and Vermont.
Under a separate agreement, the U.S. government will receive an approximately 4% equity stake in GlobalFoundries.
Renesas and Apple Among the First Customers
GlobalFoundries said its initial customers for the new facilities include Japan's Renesas Electronics and U.S. technology company Apple, with capacity intended to prioritize American and Japanese customers.
Renesas CEO Hidetoshi Shibata said the additional New York capacity would extend the company's manufacturing footprint and strengthen long-term chip supply for automotive electrification, connectivity, AI and data center applications.
Apple COO Sabih Khan noted that GlobalFoundries already manufactures critical chips for Apple products in the United States and that the investment would further strengthen domestic semiconductor manufacturing.
Other companies also welcomed the expansion. Tokyo Electron expressed support for expanding U.S. wafer fabrication capacity, while Cirrus Logic highlighted the importance of domestic manufacturing for next-generation mixed-signal products. General Motors said the project would help strengthen the semiconductor supply chain for software-defined vehicles and automotive AI.
The expansion represents a significant step in strengthening U.S. semiconductor manufacturing capacity and deepening technology cooperation between the United States and Japan.
