Japan will invest up to $21 billion in two semiconductor plants in New York State, with GlobalFoundries responsible for their operation. The US government and Japanese investors are expected to jointly own the facilities.
Japan has indicated plans to invest up to $21 billion in two semiconductor plants in New York State. GlobalFoundries (GFS) will operate both facilities, while ownership will be shared by the US government and Japanese investors. Mubadala Investment Company of Abu Dhabi, which holds a majority stake in the company, is expected to provide construction and operating services and license chip-manufacturing technology.
At the same time, the US government is expected to acquire a 4% stake in the company, increasing its holding to approximately 7%. GlobalFoundries will manage customer relationships. Japan’s Renesas Electronics and Apple have been named as initial customers for the New York plants.
The agreement forms part of an investment agreement between the United States and Japan. Based on an investment plan funded by Japan, it provides for the allocation of free cash flow to be redistributed between the two countries after a specified period.
CEO Breen indicated that Japanese equipment suppliers intend to participate in the project and emphasized cooperation across the US-Japan ecosystem.
The move is linked to efforts to rebuild US semiconductor manufacturing capacity and is reported to strengthen the position of the United States, Japan and the UAE as players in the global chip industry.