GlobalFoundries has been selected to provide the technology and operate two new semiconductor fabrication plants at its Malta, New York, site under a major U.S.-Japan trade and investment initiative. The company announced the agreement on October 14, outlining a project supported by up to $21 billion in Japanese investment to expand semiconductor production in the United States.
The initiative aims to strengthen critical supply chains, accelerate domestic chip manufacturing and meet growing demand from automotive manufacturers, industrial customers and connected infrastructure operators.
Under the agreement, GlobalFoundries will contribute its technological expertise, manufacturing capabilities and operational experience. The company expects construction to begin on the first 300mm semiconductor fabrication plant at its Malta site later this year, with the facility scheduled to open in 2029.
Two fabs planned through Japanese investment
Japan’s investment will be deployed in two stages. An initial $10 billion will finance construction of the first 300mm semiconductor fab, while a further $10 billion is earmarked for a second facility at a later date.
Once both plants are fully operational, each is expected to increase U.S. manufacturing capacity by approximately 900,000 300mm wafers annually. The project is also expected to generate more than 1,000 skilled manufacturing jobs in New York’s capital region.
GlobalFoundries said the two facilities would add substantial domestic production capacity and strengthen its ability to serve customers worldwide.
CEO Tim Breen described the initiative as a new approach to semiconductor manufacturing, combining U.S. and Japanese cooperation with GlobalFoundries’ specialized technologies and decades of manufacturing expertise to expand trusted production capacity in New York.
Growing demand for chips supports expansion
The announcement follows a period of strong revenue performance for GlobalFoundries. Part of that growth has come from communications infrastructure and data center markets, where the company reported a 60% year-over-year increase in these end markets.
The manufacturer has also established a partnership with Japan-based Renesas Electronics Corp. as demand increases for smart vehicles and automated industrial systems.
Renesas is considering GlobalFoundries’ expanded New York production capacity as an extension of its own manufacturing footprint, according to Renesas CEO Hidetoshi Shibata.
The collaboration reflects the growing importance of semiconductor manufacturing capacity to automotive technology, industrial automation and connected infrastructure, all of which depend on increasingly sophisticated electronic components.
Existing U.S. funding redirected toward advanced technologies
Alongside the new fabs, GlobalFoundries has reached an agreement with the U.S. Department of Commerce to amend one of its existing awards under the CHIPS and Science Act.
The amendment will redirect $955 million toward investments in silicon photonics, silicon-germanium technologies and advanced packaging. These investments will be carried out at GlobalFoundries’ facilities in Malta, New York, and Burlington, Vermont.
According to the company, the additional funding will expand domestic manufacturing capacity for technologies that are becoming increasingly important to communications infrastructure and data centers.
In a separate agreement, GlobalFoundries said the U.S. Department of Commerce will receive an equity stake of approximately 4% in the company.
Together, the planned fabrication plants and investments in advanced semiconductor technologies represent a broader expansion of U.S. chip production capabilities, supported by cooperation between American and Japanese stakeholders.
