Symbolic imageJapan to fund up to two GlobalFoundries chip plants in New York
Japan will invest about $21 billion in up to two chip factories in New York State, GlobalFoundries said on Wednesday. The company will operate them.
According to Nikkei Asia, the plants will be jointly owned by the US government and Japanese interests. They are part of the $550 billion investment Japan pledged last year in return for US tariffs on its cars and other imports falling from at least 25% to 15%. The National reports that Japan provides all the capital, while GlobalFoundries contributes technology and operations. About $10 billion goes to the first 300mm fab, with construction due to start this year and production in 2029. A further $10 billion would fund a second fab, which the partners have yet to decide on. Each fab is to add about 900,000 wafers to annual US capacity, and GlobalFoundries shares rose more than 4%.
US stake and Chips Act changes
In a separate agreement, the Commerce Department will take a 4% equity stake in GlobalFoundries, lifting the US government's holding to 7%, chief executive Tim Breen told Reuters. The company also agreed to reallocate $955 million of its Chips Act award to silicon photonics, silicon-germanium and advanced packaging at its New York and Vermont sites. Abu Dhabi's Mubadala remains the majority owner.