Japan Invests $21 Billion in New York Chip Plants

Japan will invest up to $21 billion to construct two semiconductor manufacturing facilities in Malta, New York. GlobalFoundries will operate the plants, which will be jointly owned by the United States government and Japanese interests, though Japan is providing all the investment capital.

The initiative is a component of a $550 billion investment deal brokered by the administration of President Donald Trump. In exchange for the investment, the United States will reduce tariffs on Japanese cars and other imports from 25% to 15%.

As part of a separate agreement, the United States Department of Commerce will acquire a 4% stake in GlobalFoundries, bringing total U.S. government ownership to approximately 7%. The Department of Commerce and GlobalFoundries also agreed to reallocate $955 million from the CHIPS Act to support advanced packaging and silicon photonics investments in New York and Vermont.

Initial customers for the new facilities include Apple and Renesas Electronics. GlobalFoundries CEO Tim Breen stated that the company intends to give priority to U.S. and Japanese customers and expressed a strong interest in involving Japanese equipment suppliers in the project.