GlobalFoundries has been tapped to build and run two new semiconductor factories at its Malta, New York campus, backed by as much as $21 billion in Japanese investment under a landmark U.S.-Japan initiative. The arrangement gives the U.S. Department of Commerce an equity stake in the chipmaker while Japan foots the bill for construction, and it positions the Capital Region as the site of one of the largest chip manufacturing expansions announced anywhere in the country.
Two Fabs, Roughly $20 Billion, and a 2029 Target Date
GlobalFoundries was selected as the technology provider and operator for the two facilities, according to a statement from GlobalFoundries, which said Japan will provide the investment while the company contributes its chipmaking technology, manufacturing expertise and operating capabilities. An initial investment of approximately $10 billion will fund construction of a new 300mm fab expected to begin operations in 2029, with a second fab planned at roughly the same cost, the company said. Each facility is expected to add about 900,000 300mm wafers of annual U.S. manufacturing capacity once fully operational.
GlobalFoundries expects to break ground on the first fab at its Malta site later this year, per the same announcement. The company is based in Malta, New York, according to Reuters, whose reporting on the deal was picked up by the Kansas City Star. Reuters reporters Stephen Nellis, Makiko Yamazaki and David Shepardson noted that the two new facilities will be jointly owned by the U.S. government and Japanese interests, with Japan providing all of the investment capital.
Jobs, Equity Stakes and Who Picks the Projects
The project is expected to create about 27,000 construction and ecosystem jobs and more than 1,000 high-skilled manufacturing jobs in New York's Capital Region, the station's report notes. As part of the arrangement, GlobalFoundries agreed with the U.S. Department of Commerce to amend its existing CHIPS and Science Act award and reallocate $955 million to accelerate investments in silicon photonics, silicon-germanium and advanced packaging, per the company's announcement. The Commerce Department will separately receive an equity stake of approximately 4% in GlobalFoundries, the company confirmed, while Reuters reported that GlobalFoundries CEO Tim Breen told the outlet the U.S. government will end up owning about 7% of the company in total once other agreements are factored in.
GlobalFoundries will earn fees for building and operating the factories, as well as licensing chip manufacturing technology to them, while managing customer relationships for the sites, according to a separate report from Investing.com. Per Reuters, the broader investment deal traces back to a 2025 commitment under which Japan pledged to invest $550 billion in the United States, with the Trump administration lowering tariffs on Japanese cars and other imports from at least 25% to 15% in exchange. Reuters reported that President Trump selects which projects get funded by Japan under the arrangement, and that available free cash flows from the investments will be split evenly between the U.S. and Japan until a specific allocation threshold is reached, after which 90% will go to the U.S.
Apple, Renesas and the Race for Capacity
Initial customers for the New York factories include Japan's Renesas Electronics and iPhone maker Apple, Investing.com reported. Renesas said it is planning around GlobalFoundries' new capacity in New York as an extension of its own production footprint, according to the company's announcement. A separate Investing.com report named Renesas, Apple, Cirrus Logic and GM among the customers cited in connection with the expanded capacity.
Breen said GlobalFoundries wants to prioritize U.S. and Japanese customers but expects other companies outside those two countries to be part of demand as well, per Reuters. The company will finalize which customers get what capacity, and over what timeframe, after an announcement process, Reuters reported. Breen also said GlobalFoundries has a strong interest in Japanese equipment suppliers participating in the buildout, noting that Japan's capital investment will flow at least partly back to chip-manufacturing toolmakers and other Japanese firms, including Tokyo Electron, a Japanese chip-manufacturing toolmaker. Reuters noted that Japanese firms and their U.S. rivals currently dominate the chip-manufacturing supply chain.
Investor Reaction and Where GlobalFoundries Fits Nationally
GlobalFoundries, which is majority-owned by Abu Dhabi sovereign wealth fund Mubadala Investment Co., saw its shares climb on the news, though reports differ on the exact premarket move. Investing.com reported the stock rose nearly 5% in premarket trading and had gained more than 33% so far in 2026 as of the prior close, while GCN reported a premarket gain of more than 2% following an earlier report about the proposal. Japan has announced two batches of projects worth more than $100 billion combined under the broader investment scheme, according to Investing.com.
GCN noted that an earlier version of the proposed plant would be comparable in scale to TSMC's Arizona expansion among the largest individual fab projects announced in North America. The federal government has previously backed large domestic chip projects elsewhere, including a $6.6 billion subsidy and up to $5 billion in low-cost government loans the Commerce Department said it would award to TSMC's U.S. unit for advanced semiconductor production in Phoenix, Arizona, according to Reuters. GlobalFoundries' earlier CHIPS Act award agreement with the Commerce Department had been aimed at meeting expected U.S. demand for chips used in automotive, data-center AI, aerospace and defense applications, the company said in a prior announcement.
