The United States and Japan announced a semiconductor investment plan that calls for GF to build 2 new plants in Malta, New York. The first plant is targeted to begin operations in 2029, with annual capacity expected to total approximately 1.8 million wafers, based on approximately 900,000 wafers per plant.
GlobalFoundries (GF), a major U.S. semiconductor contract manufacturer, has been selected as the technology provider to operate 2 new plants in Malta, New York, under the U.S.-Japan investment plan. Japan will provide up to $21 billion in funding, while GF will provide the technology and operate the plants. The first plant is scheduled to begin operations in 2029.
Once fully operational, the new plants are expected to have capacity equivalent to approximately 900,000 300mm wafers per plant. Both plants are planned to have similar capacity, with total wafer processing expected to reach approximately 1.8 million wafers annually. The planned investment is capped at $21 billion, but details of the funding allocation and whether the full funding for both plants has been secured have not been disclosed.
CHIPS Act support will be reallocated, with approximately $955 million directed toward the development of optical communications and advanced packaging technologies and the expansion of manufacturing capacity. This is expected to strengthen areas including silicon photonics and SiGe at sites in New York and Vermont.
GF will also enter into a $2 billion manufacturing agreement with TSMC and establish a system to supply silicon interposers in the United States, with mass production scheduled to begin in the first half of 2028. GF believes the stability of customer contracts will be important as it secures demand in the United States and responds to demand for advanced packaging in the AI era.