Add as a preferred source on GoogleGlobalFoundries Plans Two New York Chip Factories Under U.S.-Japan Deal
Japan could provide up to $21 billion, though funding for the second factory is unconfirmed. A separate agreement gives the U.S. Commerce Department equity equal to about 4% of the company.
GlobalFoundries plans to operate two semiconductor factories in Malta, New York, under a U.S.-Japan agreement that could bring up to $21 billion in Japanese funding, with the first facility targeted to begin operations in 2029.
The first fab would receive about $10 billion. Another $10 billion could fund a second fab, but that funding has not been confirmed. The $21 billion figure is a potential ceiling, not funding already received.
Each factory could add capacity for about 900,000 wafers annually when fully operational, for a combined potential of roughly 1.8 million wafers. GlobalFoundries will supply the technology and operate the facilities, which are intended to serve automotive, industrial and connected technology customers.
The project is expected to support about 27,000 construction and related jobs, as well as more than 1,000 manufacturing roles. The company expects to break ground on the first fab later this year.
In a separate agreement, the U.S. Department of Commerce will receive equity equal to about 4% of GlobalFoundries. The company will also redirect $955 million from an existing CHIPS Act award to optical chips, silicon-germanium technology and advanced packaging in New York and Vermont.
GlobalFoundries shares rose about 4.5% Wednesday after the announcement. The first factory is expected to begin operating in 2029.
John Kim
John Kim reports on the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.