Japan pledges up to $21 billion for two US chip plants operated by GlobalFoundries
Japan will provide as much as $21 billion to fund two semiconductor factories in New York, which will be run by GlobalFoundries under a joint US-Japan ownership structure.
Japan announced a commitment of up to $21 billion to support the construction of two semiconductor manufacturing plants in New York, a project that will be jointly owned by the US government and Japanese interests and operated by GlobalFoundries. The US will acquire a small equity position, while Japan furnishes the entire investment amount, and GlobalFoundries will earn fees for building, running and licensing the factories.
Tim Breen, chief executive of GlobalFoundries, noted that the company, majority-owned by Abu Dhabi’s Mubadala Investment Co, will manage customer relationships, with Renesas Electronics and Apple named as initial clients. The arrangement is part of a larger $550 billion investment pact struck during the Trump administration, which also lowered tariffs on Japanese cars and other goods. Breen added that part of Japan’s capital will flow back to Japanese equipment makers such as Tokyo Electron, reinforcing the existing supply-chain ties between the two nations.
Why it matters
The funding boosts US chip capacity and deepens Japan-US economic ties amid global semiconductor shortages.
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