• GlobalFoundries (GFS) will build two semiconductor facilities in Malta, NY, funded by up to $21 billion in Japanese capital under a U.S.–Japan initiative.
  • The project is projected to create 27,000 construction and ecosystem jobs plus over 1,000 manufacturing jobs, with the first fab starting production in 2029.
  • The U.S. government will receive equity in GlobalFoundries, and an additional $955 million in CHIPS Act funding will be redirected to advanced chip technologies.

GlobalFoundries ($GFS) has confirmed its selection to build and operate two new semiconductor factories in Malta, New York, backed by up to $21 billion in Japanese investment as part of a broader U.S.–Japan partnership. The deal, announced by former President Donald Trump, marks a significant expansion of America's domestic chipmaking capacity and deepens industrial ties with Japan.

Under the arrangement, U.S. and Japanese interests will jointly own the facilities, with Japan supplying the capital and GlobalFoundries earning construction, operating, and technology-licensing fees. The first factory is expected to break ground later this year, with production slated for 2029. The second factory's timeline remains unspecified.

The project is projected to generate approximately 27,000 construction and supply-chain jobs, along with more than 1,000 high-skilled manufacturing positions. However, these figures are forward-looking and do not guarantee permanent or simultaneous employment. GlobalFoundries says it is collaborating with education and workforce partners to develop semiconductor talent in the region.

In addition to the Japanese investment, the federal government will redirect $955 million in existing CHIPS Act funding toward advanced chip technologies, including silicon photonics and silicon-germanium. A company spokesman told the Times Union that "the total CHIPS award does not change," emphasizing that the funds are being reallocated rather than increased.

The U.S. government will also receive equity in GlobalFoundries as part of a separate agreement. CEO Tim Breen told Reuters (TRI) that this would bring total government ownership to about 7%, though early reports described a smaller pre-existing holding. The new agreement for approximately 4% equity is clear, but cumulative ownership figures remain inconsistent.

The new factories will target automotive, industrial, and connected-infrastructure markets, with customer support from Renesas (6723.T), Apple (AAPL), Cirrus Logic (CRUS), and General Motors (GM). "This investment will help ensure a more resilient semiconductor supply chain," said a GM spokesperson, underscoring the strategic importance of domestic capacity.

The project implements part of Japan's $550 billion U.S. investment framework negotiated in 2025, which also accompanied a reduction in U.S. tariffs on Japanese cars from at least 25% to 15%. The deal structure splits available free cash flows equally between the two countries until a specified allocation is reached, after which 90% goes to the United States.

GlobalFoundries reported $1.786 billion in revenue for the second quarter of 2026, up 6% year over year, with a reported net income of $167 million. Shares rose nearly 5% in premarket trading on the news, according to Reuters.

The company has also been expanding beyond traditional manufacturing, acquiring Synopsys (SNPS)' ARC Processor IP Solutions business in June and Photeon Technologies' integrated voltage-regulator business in July. These moves broaden its capabilities in processor design and AI data-center power delivery.

New York Governor Kathy Hochul welcomed the expansion, highlighting the state's Green CHIPS program, which supports the surrounding semiconductor ecosystem. The first site is already permitted and "shovel-ready," according to the company.

Analysts caution that the full $21 billion is a ceiling, not committed spending, and that the second factory's timetable and project margins remain undisclosed. The principal risks include execution challenges, funding timing, and sustained customer demand.

GlobalFoundries will host an investor webcast later today to discuss the announcement. The company's near-term financial outlook, issued in August, targets third-quarter revenue of $1.885 billion, plus or minus $25 million, and an adjusted gross margin of 30.5%.

Correction: An earlier version of this article misstated the total government investment figure. The $1.63 billion total and $2 billion stake valuation are not independently verified by company announcements or Reuters reporting.