GlobalFoundries Secures Japan Funding for New York Fabs
GlobalFoundries will build two new 300mm semiconductor fabs in Malta, New York, backed by up to $21 billion in Japanese investment, creating over 1,000 skilled jobs and expanding U.S. chip capacity for automotive and data center markets.
GlobalFoundries is amending its CHIPS award to redirect nearly $1 billion toward silicon photonics and advanced packaging while preparing for two new 300mm fabs in Malta, New York, backed by up to $21 billion from Japan. The company has agreed with the U.S. Department of Commerce to reallocate $955 million toward investments in silicon photonics, silicon-germanium, and advanced packaging at its facilities in Malta, New York, and Burlington, Vermont. GlobalFoundries was selected as the technology provider and operator for the two new semiconductor fabs under a U.S.-Japan trade and investment initiative.
Japan will provide up to $21 billion for the fabs to accelerate U.S. semiconductor manufacturing, strengthen supply chains, and meet automotive, industrial, and connected infrastructure demand. GlobalFoundries will contribute technological and manufacturing expertise and operational capabilities. An initial investment of approximately $10 billion will accelerate construction of a new 300mm semiconductor fab.
Capacity, timeline and economic impact
Each fab will add about 900,000 300mm wafers annually, with the first expected online in 2029 and groundbreaking later this year, creating over 1,000 high-skilled jobs and thousands more in construction. The project is expected to create about 27,000 construction and ecosystem jobs.
| Metric | Figure |
|---|---|
| Annual 300mm wafer capacity per fab (when fully operational) | ~900,000 |
| High-skilled manufacturing jobs created | >1,000 |
| Construction and ecosystem jobs expected | ~27,000 |
| First fab operational target | 2029 |
Strategic partnerships and government terms
The initiative leverages a U.S.-Japan trade agreement, includes Renesas as a technology partner evaluating GF’s New York capacity as an extension of its footprint, and grants the U.S. Commerce Department ~4% equity in GlobalFoundries. GlobalFoundries has partnered with Renesas Electronics Corp., a Japan-based chipmaker, due to growing demand for smart vehicles and automated industrial systems. Renesas is considering GlobalFoundries’ expanded capacity in New York as an extension of its own production footprint. Hidetoshi Shibata said: "Renesas is looking at GlobalFoundries’ expanded capacity in New York as an extension of its own production footprint."
In a separate agreement, the U.S. Department of Commerce will receive about 4% equity in GlobalFoundries. The initiative is enabled by President Donald J. Trump’s trade and investment agreement with Japan. Howard Lutnick is Secretary of Commerce.
Local readiness and broader context
The Malta site is shovel-ready with state support via New York’s Green CHIPS program, and GlobalFoundries cites strong growth in communications and data center markets driving demand for its expanded capabilities. GlobalFoundries has seen strong revenue performance driven by 60% year-over-year growth in the communications infrastructure and data center end markets. These investments will expand domestic manufacturing capacity for technologies critical to communications infrastructure and data centers.
GF expects to break ground on the first fab at its Malta site later in 2026. The Malta site is permitted and shovel-ready, using existing infrastructure to speed construction. New York State supports the Capital Region’s semiconductor ecosystem through its Green CHIPS program. GlobalFoundries is a leading manufacturer of essential semiconductors enabling AI at scale. Groundbreaking for the first 300mm fab is expected later this year at the Malta, New York site, which is permitted and shovel-ready.
