GlobalFoundries to build two chip fabs in New York under U.S.-Japan deal

GlobalFoundries (NASDAQ: GFS) announced it has been selected as the technology provider and operator for two new semiconductor manufacturing facilities at its Malta, New York, site under a U.S.-Japan initiative providing up to $21 billion in funding.

Japan will provide the investment capital, while GlobalFoundries will contribute its technology and operational capabilities. An initial investment of approximately $10 billion will fund construction of a new 300mm semiconductor fab expected to come online in 2029. An additional approximately $10 billion would fund a second fab.

The first fab is expected to add approximately 900,000 300mm wafers of annual manufacturing capacity when fully operational, with a second fab adding a similar amount. The project is expected to create about 27,000 construction and ecosystem jobs and more than 1,000 manufacturing jobs in New York's Capital Region. GlobalFoundries expects to break ground on the first fab at its Malta site later in 2026.

Separately, GlobalFoundries agreed with the U.S. Department of Commerce to amend its existing CHIPS and Science Act award, reallocating $955 million to accelerate investments in silicon photonics, silicon-germanium and advanced packaging at its Malta and Burlington, Vermont, facilities. The U.S. Department of Commerce will also receive an equity stake of approximately four percent in GlobalFoundries.

Renesas, Apple, Cirrus Logic and General Motors are among the customers cited in the announcement as planning to utilize the expanded capacity. Apple COO Sabih Khan noted that GlobalFoundries currently produces chips for Apple products in the United States as part of Apple's $600 billion U.S. investment commitment.

"This is a bold new initiative for semiconductor manufacturing, bringing together the United States and Japan with GF's differentiated technology and decades of manufacturing expertise to accelerate trusted capacity in New York," said GlobalFoundries CEO Tim Breen.

New York Governor Kathy Hochul said the state will continue supporting the Capital Region's semiconductor ecosystem through its Green CHIPS program.

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