GlobalFoundries (Nasdaq: GFS) has been selected to provide technology and operate two new semiconductor fabrication plants at its Malta, New York, campus under a US-Japan investment initiative worth up to $21 billion.
The project follows the trade and investment agreement between the United States and Japan, aiming to expand domestic chip production and meet rising demand from automotive, industrial, and connected infrastructure markets. Japan will fund the investment, while GlobalFoundries will oversee the technology and manufacturing operations.
The first phase involves approximately $10 billion for a new 300mm semiconductor fabrication plant, scheduled to begin operations in 2029. A further investment of around $10 billion could finance a second facility at the same site.
New Facilities to Expand US Chip Production
The first plant is expected to add around 900,000 300mm wafers to annual US manufacturing capacity once fully operational. A second facility could contribute a similar volume, significantly increasing domestic production.
The combined project is projected to create about 27,000 construction and related ecosystem jobs, plus more than 1,000 skilled manufacturing positions in New York’s Capital Region.
GlobalFoundries CEO Tim Breen highlighted the company’s manufacturing experience, specialised technology portfolio and operational capabilities as key factors behind its selection. The initiative brings together Japanese investment and the company’s established US manufacturing base to expand semiconductor production.
US Commerce Secretary Howard Lutnick linked the project to the broader objective of attracting manufacturing investment and creating high-paying jobs. The initiative is also intended to strengthen America’s industrial capacity and economic security.
$955 Million Reallocated to Advanced Semiconductor Technologies
Alongside the proposed fabrication plants, GlobalFoundries has agreed to amend its existing award under the US CHIPS and Science Act. The revised arrangement will reallocate $955 million towards investments in silicon photonics, silicon-germanium (SiGe) technologies and advanced packaging.
The funding will accelerate development at the company’s facilities in Malta, New York, and Burlington, Vermont. These technologies are becoming increasingly important for data centres and communications infrastructure, where demand for advanced semiconductor capabilities continues to rise.
In a separate agreement, the US Department of Commerce will receive an equity stake of approximately 4% in GlobalFoundries, giving the American public a financial interest in the company’s growth.
Construction Set to Begin in 2026
GlobalFoundries plans to break ground on the first facility at its Malta campus later this year. The site has already secured the necessary permits and is ready for construction, with existing infrastructure expected to help speed up development.
New York State’s Green CHIPS programme will continue to support the region’s semiconductor industry. Governor Kathy Hochul has highlighted the project’s potential to create employment, strengthen the state’s technology workforce and deepen industrial ties with Japan.
The expansion also places greater emphasis on workforce development. Grant McEwan, general manager of Fab 8 at GlobalFoundries, identified collaboration with educational institutions and training partners as an important part of preparing skilled workers for the new facilities.
Semiconductor Customers and Technology Partners to Benefit
The additional manufacturing capacity is expected to support GlobalFoundries’ existing relationships with customers and industry partners across the United States and Japan.
Renesas Electronics plans to use the new capacity as an extension of its existing manufacturing network. CEO Hidetoshi Shibata highlighted its relevance to the company’s long-term supply requirements, particularly for products serving electrification, connectivity, artificial intelligence and data centre applications.
Tokyo Electron, a long-standing equipment supplier to GlobalFoundries, also sees the expansion as an opportunity to increase US semiconductor production. President and CEO Tony Kawai emphasised the importance of equipment partnerships, skilled talent and local industry development in sustaining manufacturing growth.
Apple already works with GlobalFoundries on the production of essential chips for its products in the United States. Apple COO Sabih Khan noted that the additional investment would contribute to the country’s manufacturing ecosystem and align with Apple’s broader domestic investment programme.
Cirrus Logic expects the new facilities to provide additional US-based manufacturing capacity for next-generation mixed-signal semiconductors. CEO John Forsyth highlighted the importance of reliable domestic production for future products and supply chain resilience.
General Motors also stands to benefit from increased local chipmaking capacity. The automaker’s investments in autonomous driving, centralised computing and artificial intelligence are increasing its need for reliable semiconductor supplies. GM President Mark Reuss pointed to the company’s existing direct supply agreement with GlobalFoundries as an important part of that relationship.
About GlobalFoundries
GlobalFoundries supplies semiconductor solutions to sectors such as automotive, aerospace and defence, data centres, mobile devices and IoT. Its technologies support applications in artificial intelligence, connectivity and other high-growth markets.
The company operates manufacturing facilities across the United States, Europe and Asia, supplying customers worldwide with specialised, power-efficient and high-performance semiconductor solutions. Its business focuses on reliable manufacturing, long-term supply and sustainable operations.
