Key facts
- Japan will invest up to $21 billion in two US chip factories.
- GlobalFoundries will operate the new factories in New York.
- The US government will increase its total ownership of GlobalFoundries to about 7%.
- Initial customers include Japan's Renesas Electronics and Apple.
- Construction of the first factory is scheduled to begin this year, with chip production expected in 2029.
Japan will invest up to $21 billion in two new semiconductor factories in New York State, which will be jointly owned by the US government and Japanese interests and operated by GlobalFoundries. This initiative is part of a broader deal where Japan committed to investing $550 billion in the US. GlobalFoundries, majority-owned by Abu Dhabi's Mubadala Investment, will earn fees for managing construction and operations. The US government's stake in GlobalFoundries will increase to about 7%, valued at over $2 billion, according to President Donald Trump. Initial customers for the factories include Japan's Renesas Electronics and Apple. Construction of the first factory is scheduled to begin this year, with chip production expected in 2029, adding about 900,000 300mm wafers of annual US manufacturing capacity.