Japan is investing up to $21 billion in the US-based Semiconductor factories, which will be operated by GlobalFoundries.

Japan will invest up to $21 billion in two New York based semiconductor facilities run by GlobalFoundries in the United States.

News Source: https://gf.com/

Under a U.S.-Japan initiative offering up to $21 billion in funding, GlobalFoundries today stated that it has been chosen as the technology provider and operator for two new semiconductor manufacturing facilities at its Malta, New York, facility. The plan, made possible by President Donald J. Trump's trade and investment deal with Japan, would boost reliable semiconductor production in the US, fortify vital supply chains, and meet rising demand in the automotive, industrial, and connected infrastructure sectors.

GlobalFoundries will contribute its unique innovations, manufacturing skills, and demonstrated operating capabilities as a technology provider and operator, while Japan will be providing the investment. The development of a new 300mm semiconductor manufacturing plant, which is anticipated to come online in 2029, will be accelerated by an initial expenditure of about $10 billion. A second facility would require an additional expenditure of about $10 billion. When combined, the two facilities will significantly increase U.S. manufacturing capacity and strengthen GlobalFoundries's capabilities to serve clients across the globe.

The investment is a part of an agreement reached last year by President Donald Trump's administration for Japan to invest $550 billion in the United States in exchange for the United States reducing tariffs on Japanese automobiles and other imports from at least 25% to 15%.

The CEO of GlobalFoundries, Tim Breen said “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. GlobalFoundries was selected because facilities of this scale require more than capital. They require differentiated technology, operational excellence and a proven ability to execute. That combination is what positions GF to make this first-of-its-kind initiative a success.”

Leading producer of vital semiconductors, GlobalFoundries (GF) enables AI at scale from the cloud to the real world. GlobalFoundries provides unique, power-efficient, and high-performance solutions for the automotive, aerospace and defense, data center, smart mobile devices, internet of things, and other high-growth areas through strong client collaborations. GlobalFoundries is a reliable and comprehensive technological partner for clients worldwide, with manufacturing facilities spread throughout the United States, Europe, and Asia.

FAQs:

Q: How much is Japan investing in the GlobalFoundries chip factories?

A: Japan will invest up to $21 billion in two New York based semiconductor facilities run by GlobalFoundries in the United States.

Q: Who will own and operate the new New York semiconductor plants?

A: The new semiconductor factories will be jointly owned by the U.S. government and Japanese interests, while GlobalFoundries will fully operate them.

Q: What is the timeline for the GlobalFoundries factory construction and production?

A: Later this year, work on the first GlobalFoundries manufacturing plant will begin, and full commercial chip production is expected to be operational by 2029.

Q: What kinds of microchips will the new facilities manufacture?

A: The factories will manufacture "essential chips," which are foundational semiconductors used in automotive, industrial infrastructure, and telecommunications gear.

Q: How does this deal affect GlobalFoundries' existing U.S. CHIPS Act subsidies?

A: GlobalFoundries is reallocating $955 million in federal CHIPS Act subsidies to accelerate separate advanced packaging and technology upgrades at its current New York and Vermont sites.