GlobalFoundries has secured a central role in a $21 billion US-Japan semiconductor manufacturing initiative, with plans to build and operate two new fabrication plants at its Malta, New York, campus. The agreement places the company at the center of a major manufacturing expansion as the United States seeks to strengthen domestic chip production and deepen international supply-chain partnerships. Japan will finance the investment, beginning with $10 billion for a new 300-millimeter wafer fabrication facility. GlobalFoundries expects the first plant to begin operations in 2029, adding capacity designed to serve customers across the global semiconductor market.

First $10 Billion Investment Targets 2029 Production

GlobalFoundries said the site for the first fab has already secured the necessary permits and is “shovel-ready,” positioning the company to begin construction later this year. The initial investment will support the development of the 300mm facility, a critical component of the broader effort to expand advanced semiconductor manufacturing in the United States. The project gives GlobalFoundries a defined construction timeline while creating a foundation for further capacity growth at its existing Malta operations. Its execution will depend on the timely delivery of construction, equipment installation and production-readiness milestones.

The agreement also outlines a second investment package of approximately $10 billion to fund another fabrication plant at the same location. GlobalFoundries said the additional facility will add “significant new US manufacturing capacity” and help the company continue supporting its global customer base. Together, the two plants are expected to produce around 900,000 300mm wafers annually once fully operational. The planned expansion represents a substantial increase in domestic manufacturing infrastructure, although the announcement does not specify a separate production ramp schedule for each facility.

Semiconductor Expansion Expected to Create Thousands of Jobs

The initiative is expected to generate approximately 27,000 construction and ecosystem jobs, alongside more than 1,000 high-skilled manufacturing jobs around New York City, according to GlobalFoundries. These figures reflect the wider economic footprint of a major semiconductor investment, extending beyond direct employment at the fabrication plants. Construction activity, equipment installation and supporting industrial services will form part of the project’s broader employment ecosystem. However, the announcement does not provide a detailed breakdown of the expected jobs by occupation, location or construction phase.

The expansion also strengthens Malta’s position within the US semiconductor manufacturing landscape. Large-scale fabrication facilities require substantial investment in specialized equipment, reliable utilities, technical expertise and supporting supply chains. GlobalFoundries’ existing presence in New York provides an operating base for the planned expansion, while the second fab would extend the site’s long-term manufacturing footprint. The commercial impact will ultimately depend on customer demand, production yields and the company’s ability to bring both facilities online as planned.

CHIPS Act Award Reallocated to Advanced Technologies

Alongside the Japan-backed investment, GlobalFoundries has agreed with the US Department of Commerce to amend its existing award under the CHIPS and Science Act. The revised arrangement reallocates $995 million toward silicon photonics, silicon-germanium (SiGe) and advanced packaging development at facilities in Malta, New York, and Burlington, Vermont. These technologies support different parts of the semiconductor value chain, including optical connectivity, specialized high-frequency applications and the integration of chip components into advanced packages. The reallocation broadens the agreement beyond conventional wafer manufacturing by directing federal support toward additional technology capabilities.

The company also disclosed a separate agreement under which the US Department of Commerce will receive a 4% equity stake in GlobalFoundries. The announcement does not specify the terms governing that stake or provide further details about associated ownership rights. The arrangement introduces a direct equity component alongside the existing government support framework. Together, the revised award and equity agreement add another dimension to the financial structure surrounding the company’s US expansion.

“This is a bold new initiative for semiconductor manufacturing, bringing together the United States and Japan with GF’s differentiated technology and decades of manufacturing expertise to accelerate trusted capacity in New York,” said Tim Breen, CEO of GlobalFoundries. “GF was selected because fabs of this scale require more than capital. They require differentiated technology, operational excellence, and a proven ability to execute. That combination is what positions GF to make this first-of-its-kind initiative a success.” US Commerce Secretary Howard Lutnick linked the investment to the broader US-Japan trade relationship. “President Trump’s historic US-Japan Trade Deal is delivering another massive manufacturing investment into America. With Japan’s investment funding and GlobalFoundries’ partnership, two large semiconductor chip manufacturing facilities will be built in the US, creating thousands of high-paying jobs for American workers.”

A Larger Bet on US Semiconductor Capacity

The agreement combines Japanese financing, GlobalFoundries’ manufacturing expertise and a revised US government support arrangement in a single industrial expansion. Its significance extends beyond the construction of two plants: the investment also targets technologies that connect semiconductor manufacturing with optical communications and advanced packaging. For the US industry, the project adds another planned source of domestic wafer capacity while reinforcing cross-border investment ties. The next milestones will be construction progress, the first fab’s targeted 2029 opening and the eventual delivery of the production and employment commitments.