GF announced that Japan plans to invest up to $21 billion to build 2 semiconductor plants in New York State. The plants will be jointly owned by Japan and the US, with GF responsible for their operation.
GlobalFoundries (GF), a major Japan-affiliated semiconductor foundry, announced that it will invest up to $21 billion to build 2 new semiconductor plants in New York State. The plants will be jointly owned by Japan and the US, with GF expected to operate them.
The US government is making this arrangement on the assumption that Japan will invest in the US as part of a framework under which tariffs on imports such as Japanese automobiles will be reduced. According to GF, the US government will acquire a stake in the new plants, while Japan will provide all of the investment funding.
Under a separate agreement, the US government will acquire 4% of GF's shares, bringing the US ownership stake in GF to approximately 7%, GF CEO Tim Breen said. Initial customers include Japan's Renesas Electronics and Apple of the US.
Breen said that the company would give priority to customers in Japan and the US, while also expecting demand from companies outside those two countries in the future. He added that some of Japan's capital investment could flow back to Japanese equipment suppliers.
Japan has so far announced 2 groups of projects totaling more than $100 billion under the investment program.