GlobalFoundries to open two New York chip plants with $21 billion from Japan

GlobalFoundries Inc. announced Wednesday that it plans to open two computer chip factories in Malta, New York. The expansion is financed by an investment of up to $21 billion from Japan, according to the Associated Press.

Financing and Federal Funding Shift

The company stated that the deal was made possible by the Trump administration’s trade and investment agreement with the Japanese government. GlobalFoundries said the initiative will accelerate semiconductor manufacturing in the U.S. and strengthen critical supply chains.

Previously, GlobalFoundries received some federal funding to expand as part of a Biden administration program designed to boost chip production. Kenneth Craig, a GlobalFoundries spokesperson, said in an email that as a result of the new investment from Japan, that federal funding will now go to investments in other areas to advance semiconductor manufacturing.

U.S. Government Ownership Stake

U.S. President Donald Trump posted on social media that the U.S. government will receive shares in GlobalFoundries. This move mirrors the administration’s policy of taking ownership stakes in private companies, a step previously taken with Intel Corp.

Plant Construction Details

In a statement, GlobalFoundries outlined how the funds will be allocated. Roughly $10 billion will accelerate the construction of a chip factory scheduled to open in 2029. The other $10 billion will fund a second plant.

Industry Context

Demand for semiconductors has surged in recent years due to artificial intelligence and the need for computing power at data centers. In July, Taiwan computer chipmaker TSMC said it plans to spend another $100 billion on expanding its manufacturing capacity in the U.S. TSMC has been expanding chip fabrication plants in the U.S., Japan and Taiwan.

Why it matters

This investment highlights the strategic importance of domestic semiconductor manufacturing in the U.S. The shift in federal funding from GlobalFoundries to other areas suggests a reallocation of resources within the Biden administration's chip production program, while the Trump administration's acquisition of shares signals a continued policy of government involvement in key technology sectors. The expansion also reflects the broader global race to secure supply chains for AI-driven computing needs.

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Sources

• thestar.com: GlobalFoundries to open 2 new chip plants in New York with $21 billion in financing from Japan
• bnnbloomberg.ca: AI news: GlobalFoundries to open two new chip plants in New York

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.