GlobalFoundries to Invest $21 Billion in New York Chip Plants, Backed by Japanese Financing

Semiconductor manufacturer GlobalFoundries Inc. announced plans to construct two new chip-making factories in Malta, New York, supported by up to $21 billion in financing from Japan. The company stated that this significant investment was facilitated by the trade and investment agreement between the Trump administration and the Japanese government.

The initiative is expected to accelerate domestic semiconductor production and reinforce critical supply chains within the United States. GlobalFoundries had previously received federal funding for expansion under a Biden administration program aimed at increasing chip output. A GlobalFoundries spokesperson confirmed that this federal funding will now be allocated to other areas promoting semiconductor manufacturing advancements, with the new Japanese investment enabling the New York expansion.

According to GlobalFoundries, approximately $10 billion will be used to expedite the construction of a chip factory scheduled to open in 2029. An additional $10 billion is designated for the funding of a second manufacturing plant.

The surge in demand for semiconductors has been driven by the growth of artificial intelligence and the increasing need for computing power in data centers. This development follows similar expansion efforts by other major players in the semiconductor industry. In July, Taiwan-based TSMC announced plans to invest another $100 billion in expanding its U.S. manufacturing capacity, building upon its existing fabrication plants in the U.S., Japan, and Taiwan.