GlobalFoundries is set to construct two semiconductor manufacturing plants in New York, fueled by a potential $20 billion investment from Japan and additional funding from the CHIPS Act. This announcement was made on Wednesday, marking a significant expansion for the company in the U.S. chip market.
The initiative includes an investment of approximately $10 billion from Japan for each facility. This financial backing is part of a broader trade and investment partnership established during the Trump administration. Under a trade agreement reached last year, Japan committed to investing $550 billion in various key sectors within the United States, which encompasses semiconductor manufacturing as well as energy and shipbuilding.
The U.S. Commerce Department intends to take a 4% stake in GlobalFoundries as part of this initiative, further solidifying the partnership between the government and the chip manufacturer. The development comes amid ongoing global attention to semiconductor supply chains and the U.S. efforts to bolster its domestic chip production capabilities.
GlobalFoundries has not yet disclosed specific timelines for the construction of the new plants. However, the company’s strategy aligns with increased national efforts to secure more resilient and independent semiconductor supply chains, especially in light of geopolitical tensions and global shortages faced in recent years.
