Key points
- Up to $21 billion from Japan
- A first fab due in 2029, a second planned
- A new 4% U.S. stake in GlobalFoundries
- Apple and Renesas among the first customers
GlobalFoundries (GFS) will build and operate a new chip plant in Malta, New York, under a U.S.-Japan initiative providing up to $21 billion. About $10 billion is planned for the first plant, with another roughly $10 billion contemplated for a second, the company said on October 14.
Japan would supply the investment capital under its $550 billion U.S. investment pledge. GlobalFoundries would provide the chipmaking technology and earn fees for building and operating the plants.
The announcement follows talks first reported by Nikkei on September 17, when the project was valued at up to $19 billion.
Japan supplies the capital; GlobalFoundries earns fees
The plants would be jointly owned by the U.S. government and Japanese interests, Reuters reported. GlobalFoundries would also receive technology-licensing fees. The company did not disclose the fee amounts.
| Plant | Investment | Annual capacity | Timing |
|---|---|---|---|
| First fab | About $10 billion | About 900,000 300mm wafers | Groundbreaking later in 2026, online in 2029 |
| Potential second fab | About $10 billion | About the same | Not given |
Source: GlobalFoundries, October 14, 2026. Capacity is at full operation.
GlobalFoundries said the Malta site is permitted and ready for construction. The second plant remains conditional: the release says additional investment “would fund” it. The announcement does not explain the difference between the roughly $20 billion allocated to the two plants and the initiative’s $21 billion ceiling.
Under the broader U.S.-Japan arrangement, President Trump selects the projects Japan funds. Available free cash flow is divided equally between the countries until a specified threshold is reached, after which the United States receives 90%. Earlier project rounds, announced in February and March, covered energy, power, and critical minerals.
Commerce will receive a new stake of about 4%
In a separate agreement, the Commerce Department will receive equity in GlobalFoundries of about 4%, the company said. The release gives no price or share count. CEO Tim Breen told the news agency the new stake brings the government's total ownership to about 7%.
The Commerce Department already holds a stake from May, tied to GlobalFoundries' quantum unit, which the company said then represented about 1% ownership. We covered that stake when the company's $375 million quantum award was finalized in September.
The release and Breen's reported comments don't reconcile the new 4% stake, the earlier roughly 1% stake, and the stated 7% total.
GlobalFoundries also agreed to amend its existing CHIPS and Science Act award to reallocate $955 million. The money will go toward silicon photonics, silicon-germanium, and advanced packaging at its plants in Malta and Burlington, Vermont.
Apple and Renesas are among the first customers
Breen said GlobalFoundries will manage customer relationships for the plants, and the first customers include Renesas Electronics and Apple (AAPL). "We definitely would like to give priority to US and Japanese customers," he said.
Apple Chief Operating Officer Sabih Khan said in the release that the company has partnered with GlobalFoundries "to produce essential chips for Apple products right here in the United States." Renesas, Tokyo Electron, Cirrus Logic, and General Motors also gave statements.
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, the company said. GlobalFoundries will host a webcast for investors at 1 p.m. EDT on Wednesday.
GlobalFoundries shares traded at $49.35, up 5.7% from Tuesday's close of $46.70, as of 10:06 a.m. ET.
