Japan and the US have agreed to build two jointly owned semiconductor plants in New York State. The business scale is initially expected to be approximately $10 billion, with the potential to expand to around $21 billion in the future.
The Japanese and US governments have agreed to establish two jointly owned semiconductor plants in New York State as part of the framework for US-bound investment and financing. GF, a major semiconductor foundry, will operate the plants and proceed with construction and the development of the supply chain. Initial customers are expected to include Japan’s Renesas Electronics and US-based Apple, with the policy of prioritising customers from both Japan and the US.
Japan will provide all of the investment funds, while the US government will provide GF with grants totalling approximately $1.63 billion. It was also explained that the US government’s acquisition of a 4% stake in GF would bring its US ownership ratio to approximately 7%. GF indicated its long-term earnings outlook. Japan’s Ministry of Economy, Trade and Industry explained that the overall business scale would be approximately $10 billion, with the potential to expand to around $21 billion through future capital investment.
As for the schedule and employment outlook, construction of the first plant is expected to begin this year, with production scheduled to start in 2029. A policy was presented under which a decision on construction of the second plant would be made by the end of 2028, and more than 1,000 plant jobs are expected to be created in New York State. A GF executive said the company expects long-term earnings by responding to growing demand from AI data centres.