GlobalFoundries will build and operate up to two new semiconductor factories at its campus in Malta, New York, financed with up to $21 billion from Japan, the chipmaker announced on Wednesday, Oct. 14. As part of a separate agreement, the U.S. Commerce Department will receive a stake of roughly 4% in the company.
- $21BJapanese funding, up toAbout $10B per fab
- ~4%New U.S. government stake
- 1,000+Manufacturing jobs
- 2029First fab expected online
Source: GlobalFoundries SEC filing, Reuters
How the Deal Works
According to the company's announcement filed with the SEC, GlobalFoundries was selected as the technology provider and operator for two 300mm fabs, with about $10 billion earmarked for each. Reuters reported that Japan will supply all of the capital and that the plants will be jointly owned by the U.S. government and Japanese interests, with GlobalFoundries earning fees to build and run them and to license its technology.
The money comes from Japan's $550 billion U.S. investment pledge, made as part of the trade agreement that lowered U.S. tariffs on Japanese cars and other goods to 15%. Under that framework, Trump selects the projects, according to Reuters. A decision on whether to proceed with the second fab is due before the end of 2028.
A Bigger Government Stake
The government already held about 3% of GlobalFoundries, and CEO Tim Breen told Reuters the new agreement brings that to roughly 7%. Trump said on Truth Social that the government values the combined stake at more than $2 billion.
It's the latest example of the administration taking equity in companies it supports. In August 2025, the Commerce Department converted grant money into a roughly 10% stake in Intel, and earlier this year it took stakes in several quantum computing companies.
Abu Dhabi's Mubadala remains GlobalFoundries' majority owner.
Jobs, Timing and Chips
The company says the project will support about 27,000 construction and ecosystem jobs and more than 1,000 high-skilled manufacturing jobs. Groundbreaking is planned for later in 2026 at a site that is already permitted, with the first fab expected to come online in 2029.
The plants will make specialized chips rather than the cutting-edge processors used in smartphones and AI accelerators. That includes silicon photonics, silicon-germanium chips and advanced packaging for cars, industrial equipment, communications and data centers. Customers named in the announcement include Apple, General Motors, Renesas and Cirrus Logic.
New York Gov. Kathy Hochul called the deal a strong vote of confidence in the state's workforce.
Investors Cheer
GlobalFoundries shares rose more than 4% in afternoon trading Wednesday, according to Reuters, extending a year-to-date gain of more than 39%.
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