Japan plans to invest up to $21 billion in the construction of US semiconductor plants at the direction of President Trump. Japanese companies expect to expand equipment orders and secure a stable supply of semiconductors, while the funding burden remains a challenge.
GlobalFoundries has announced plans to build 2 semiconductor plants in New York State. The total project cost is up to $21 billion, with approximately $10 billion to be invested in the first plant, followed by construction of the second plant after the first begins operations in 2029. The project is expected to create jobs and expand manufacturing and component supply, increasing local production capacity.
Under the project structure, Japan will provide the funding and a US company will operate the plants. A special-purpose vehicle will be established to manage financing, construction and production, with GlobalFoundries responsible for operations. The plants will produce logic semiconductors, with Renesas Electronics and Apple expected to participate as initial customers.
The project is intended to stabilize semiconductor procurement in the US and diversify supply chains, but the burden of raising dollar funding is substantial and poses a financial challenge for Japanese banks. US financial institutions are moving to participate in the second project, and the appropriateness of government support for dollar funding and lending terms are expected to be areas of focus.