GlobalFoundries (Nasdaq: GFS) has been selected to provide technology and operate two new semiconductor manufacturing facilities in Malta, New York, under a U.S.-Japan initiative backed by up to $21 billion in funding. The project aims to expand domestic chip production, strengthen supply chains and meet demand from automotive, industrial and connected infrastructure markets.
Japan will provide the investment, while GlobalFoundries will contribute its semiconductor technologies, manufacturing expertise and operational capabilities. The initiative follows the trade and investment agreement between the United States and Japan under President Donald Trump.
The first phase involves an investment of approximately $10 billion to accelerate construction of a new 300mm wafer fabrication facility, which is expected to begin operations in 2029. An additional investment of approximately $10 billion would support a second fab at the same site.
When fully operational, the first facility is expected to add approximately 900,000 300mm wafers of annual U.S. manufacturing capacity. The second could contribute a similar amount, potentially bringing the combined addition to approximately 1.8 million wafers annually.
The companies and governments involved have not disclosed a construction schedule for the second facility.
“This is a bold new initiative for semiconductor manufacturing, bringing together the United States and Japan with GF’s differentiated technology and decades of manufacturing expertise to accelerate trusted capacity in New York,” said Tim Breen, CEO of GlobalFoundries.
CHIPS Funding Reallocated to Advanced Technologies
Alongside the fab initiative, GlobalFoundries has agreed with the U.S. Department of Commerce to amend its existing award under the CHIPS and Science Act. The amendment will reallocate $955 million to accelerate investments in silicon photonics, silicon-germanium (SiGe) and advanced packaging at its facilities in Malta, New York, and Burlington, Vermont.
These technologies are increasingly important for communications infrastructure and data centers. Silicon photonics uses optical signals to transmit data, supporting high-bandwidth communications, while SiGe technology is used in high-frequency and high-performance semiconductor applications. Advanced packaging integrates semiconductor components to improve system performance and functionality.
The investments are intended to expand U.S. manufacturing capacity in these areas as demand for data processing and connectivity infrastructure grows.
In a separate agreement, the Department of Commerce will receive an equity stake of approximately 4% in GlobalFoundries. The arrangement gives the U.S. government a direct ownership interest in the company, allowing the public to participate in its growth, according to the announcement. Further details of the equity arrangement were not disclosed.
Construction Expected to Begin This Year
GlobalFoundries expects to break ground on the first fab at its Malta site later this year. The company said the site is permitted and ready for construction, with existing infrastructure expected to help accelerate development.
The project is expected to generate approximately 27,000 construction and ecosystem jobs, along with more than 1,000 high-skilled manufacturing jobs in New York’s Capital Region. The broader employment estimate includes construction activity and jobs across the surrounding industrial ecosystem; the company did not provide a detailed breakdown.
New York has supported semiconductor investment through its Green CHIPS program, which aims to develop the state’s manufacturing base and related workforce. Governor Kathy Hochul said the expansion would strengthen the Capital Region’s position in the global semiconductor industry and create opportunities for local workers and suppliers.
GlobalFoundries’ Malta operations have been running since 2009 and are among the foundations of the region’s semiconductor manufacturing ecosystem. Grant McEwan, general manager of Fab 8 at GlobalFoundries, said the company would work with education and workforce partners to prepare additional semiconductor talent.
Automotive and Technology Customers Welcome Expansion
The planned capacity builds on GlobalFoundries’ relationships with customers and equipment suppliers in the United States and Japan.
Renesas Electronics (TSE: 6723) CEO Hidetoshi Shibata said the additional capacity would complement the Japanese chipmaker’s production footprint and support long-term semiconductor supply for applications spanning electrification, connectivity, artificial intelligence and data centers.
Tokyo Electron (TSE: 8035), a semiconductor manufacturing equipment supplier, also welcomed the initiative. President and CEO Tony Kawai said resilient chip production depends on a trusted ecosystem of equipment providers, technology partners and skilled workers.
Apple (Nasdaq: AAPL) said it has partnered with GlobalFoundries to manufacture chips used in its products in the United States. Chief Operating Officer Sabih Khan said the investment would support the company’s American Manufacturing Program and expand the domestic semiconductor ecosystem.
Cirrus Logic (Nasdaq: CRUS) said the new facilities would provide additional domestic manufacturing capacity for next-generation mixed-signal products. President and CEO John Forsyth said the expansion could support more resilient supply chains and future product development.
General Motors (NYSE: GM) also welcomed the plan. The automaker has a direct supply agreement with GlobalFoundries, which the companies previously identified as the first such agreement between an automaker and a semiconductor foundry. GM President Mark Reuss said domestic fab capacity would support growing computing requirements in software-defined vehicles, autonomous driving and AI-enabled vehicle systems.
Strategic Implications for U.S. Chip Manufacturing
The initiative combines Japanese capital with U.S.-based manufacturing and technology capabilities as governments and companies seek more geographically diversified semiconductor supply chains. The proposed facilities would add substantial production capacity in New York, while the separate CHIPS funding reallocation targets technologies used in advanced communications and computing infrastructure.
However, the scale of the planned expansion means execution will depend on construction, workforce development, equipment installation and customer demand. The second fab also remains dependent on the additional proposed investment.
