Japan to Fund Two GlobalFoundries Fabs in New York
GlobalFoundries will operate two planned semiconductor factories backed by up to $21 billion in Japanese investment, with the first expected in 2029.
Key takeaways
- Japan will provide up to $21 billion for two planned GlobalFoundries fabs in Malta, New York.
- The first fab is expected to begin operating in 2029.
- GlobalFoundries expects the project to create about 27,000 construction and ecosystem jobs.
GlobalFoundries said it will operate two new semiconductor factories in Malta, New York, funded by up to $21 billion from Japan. The first fab is expected to come online in 2029.
The company said an initial investment of about $10 billion will fund the first factory. A further investment of about $10 billion would support the second. GlobalFoundries will provide technology and operating expertise, while Japan supplies the investment capital.
The company expects the first fab to add about 900,000 wafers of annual U.S. manufacturing capacity when fully operational. The second would add roughly the same amount. GlobalFoundries also projects about 27,000 construction and ecosystem jobs, plus more than 1,000 manufacturing jobs.
GlobalFoundries said it expects to break ground on the first fab later this year. The company named Renesas Electronics and Apple among the initial customers for the New York facilities, according to CNA.
In a separate agreement, the U.S. Department of Commerce will receive about a 4% equity stake in GlobalFoundries. The company also agreed to reallocate $955 million from its existing CHIPS and Science Act award to investments in silicon photonics, silicon-germanium and advanced packaging.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
