GlobalFoundries Agrees to Build Two NY Chip Plants With $21B Japan Backing, US Takes 4% Stake

GlobalFoundries agreed to build two new semiconductor facilities in Malta, New York, funded by up to $21 billion from the Japanese government. Under the broader arrangement, the US Commerce Department will take a roughly 4% equity stake in the chipmaker. The factories will be jointly owned by the US and Japan, with profits split 90-10 in Washington's favor after Japan recoups its principal and accrued interest. Production will bypass advanced AI nodes to focus exclusively on "essential chips" required for vehicles, industrial equipment, and communications hardware. The first plant is expected to be operational in 2029, while the second facility's construction remains contingent on market demand. "We’re not going to do it if the market isn’t there, but every indicator I see today is flashing green around market demand." — Tim Breen