GlobalFoundries to Operate Two New Semiconductor Fabs in New York Under U.S.-Japan Initiative

Landmark U.S.-Japan Deal Brings Two Fabs to Malta, New York

GlobalFoundries (Nasdaq: GFS) has been selected as the technology provider and operator for two new semiconductor manufacturing facilities at its Malta, New York, site under a U.S.-Japan initiative providing up to $21 billion in funding. Announced on October 14, 2026, the initiative is enabled by President Donald J. Trump's trade and investment agreement with Japan, under which Japan will provide the investment while GlobalFoundries contributes its differentiated technologies, manufacturing expertise and operational capabilities.

An initial investment of approximately $10 billion will accelerate construction of a new 300mm semiconductor fab expected to come online in 2029. An additional investment of approximately $10 billion would fund a second fab, together adding significant new U.S. manufacturing capacity and reinforcing GlobalFoundries' ability to support customers worldwide.

Capacity, Jobs and Restructured CHIPS Funding

The first fab is expected to add approximately 900,000 300mm wafers of annual U.S. manufacturing capacity when fully operational, with the second fab adding roughly the same amount. The project is expected to create about 27,000 construction and ecosystem jobs and more than 1,000 high-skilled manufacturing jobs in New York's Capital Region.

GlobalFoundries has also agreed with the U.S. Department of Commerce to amend its existing CHIPS and Science Act award to reallocate $955 million toward accelerated investments in silicon photonics, silicon-germanium (SiGe) and advanced packaging at its facilities in Malta, New York, and Burlington, Vermont. Under a separate agreement, the Department of Commerce will receive equity in GlobalFoundries of approximately four percent, enabling the American public to share in the company's growth.

Construction Timeline and Customer Reactions

GlobalFoundries expects to break ground on the first fab at its Malta site later this year. The site is permitted and shovel-ready, using existing Malta infrastructure to speed construction. The project is also supported by New York State's Green CHIPS program, according to Governor Kathy Hochul.

Major customers and partners welcomed the announcement. Renesas CEO Hidetoshi Shibata said the company is planning around the new capacity as an extension of its own production footprint. Tokyo Electron president and CEO Tony Kawai highlighted the deeply integrated U.S.-Japan collaboration underpinning the global semiconductor industry. Apple COO Sabih Khan noted GlobalFoundries' role as an inaugural member of Apple's American Manufacturing Program, while Cirrus Logic president and CEO John Forsyth and GM president Mark Reuss described the expansion as a step forward for domestic mixed-signal production and a resilient supply chain for software-defined vehicles.

GlobalFoundries will host a webcast for investors and analysts on October 14 at 1 p.m. EDT to discuss the announcement.

Sources: GlobalFoundries · Techmeme