GlobalFoundries Projects $0.10 to $0.15 in 2027 EPS Accretion From New York Fab

GlobalFoundries expects its planned first semiconductor fab in Malta, New York, to add $0.10 to $0.15 in annual diluted EPS in 2027 under a larger U.S.-Japan investment plan.

The first 300mm fab is expected to begin operating in 2029 and cost about $10 billion. The broader plan carries a funding ceiling of up to $21 billion; that amount covers the overall plan, not the first fab alone. Roughly $10 billion is also associated with a potential second fab, which remains subject to approval. At full run rate, each fab is expected to add about 900,000 300mm-equivalent wafers of annual capacity. If completed, the two-fab plan could add about 1.8 million wafers annually.

The proposed structure separates financing and asset ownership from fab operations. A special purpose vehicle owned by the U.S. and Japanese governments would fund and own the facility’s infrastructure and tooling and cover operating expenses. GlobalFoundries would provide technology, build and operate the fab, and receive technology, construction and operating-management fees, a share of EBITDA and reimbursement for shared services. Japan would provide the investment.

For the first fab, GlobalFoundries forecasts a $0.10 to $0.15 increase in diluted EPS in 2027 and a longer-term annual increase of $0.50 to $0.75. The company also estimates about $3 billion in cumulative adjusted free cash flow during the first 10 years. The projections are non-IFRS estimates that assume a Jan. 1, 2027, start for the arrangement and remain subject to the transaction closing, final contract terms and accounting treatment. The facility itself is targeted to begin operating in 2029.

In New York’s Capital Region, the project is expected to support more than 1,000 skilled manufacturing jobs and roughly 27,000 construction and related jobs. Separately, the U.S. Commerce Department is set to receive about 4% equity in GlobalFoundries, while $955 million from an existing CHIPS and Science Act award is being redirected to investments in silicon photonics, silicon-germanium and advanced packaging in Malta and Burlington, Vermont.

The agreement’s broader terms are detailed in an earlier report on the New York fabs. The first fab is targeted to come online in 2029.