Japan and US discuss a chip plant worth up to $19 billion. GlobalFoundries (GFS) would run it.

By Dennis Singleton · Markets Writer · September 17, 2026, 8:29 AM ET

A Japanese flag flying against a blue sky

Key points

Talks could fund a chip plant on US soil
GlobalFoundries (GFS) would operate it
The project could reach $19 billion
Could become the first chip project under Japan's pledge

Japan and the United States are discussing a new US chip plant that GlobalFoundries (GFS) would operate. The proposed project could count toward Japan's $550 billion US investment pledge under last year's tariff agreement.

The project could be worth as much as $19 billion, Nikkei reported on Thursday, citing officials of both governments familiar with the talks. Reuters put the range at 2 trillion to 3 trillion yen, or about $12.9 billion to $19.3 billion. The plant would make logic chips. Those are the processors that do a device's computing, not the memory chips that store its data.

Neither government has commented, and nothing has been announced. The report does not say where in the US the plant would go, when it would be built, which manufacturing process it would use, or how the money would be split between the two sides.

GlobalFoundries closed at $43.03 on Wednesday and traded at $44.52 before Thursday's open, up about 3.5%.

How the project fits Japan's investment pledge

Japan's $550 billion pledge covers investments, loans and loan guarantees for projects in the United States. Agreed under last year's tariff deal, the financing is available through the end of Donald Trump's second term. A US chip plant operated by GlobalFoundries would fit that framework.

The financing is not limited to Japanese companies. Trade minister Ryosei Akazawa has said a Taiwanese chipmaker building a US plant with Japanese components could qualify. GlobalFoundries has its headquarters and largest US operation in Malta, New York. It is incorporated in the Cayman Islands, and Abu Dhabi state fund Mubadala is its largest shareholder.

A possible first chip project

The two rounds of projects announced so far total up to $109 billion, and neither included an AI-compute or chipmaking project. The first round, announced in February, covered oil, gas and critical minerals. The second, announced on March 20, included up to $40 billion for small modular reactors and up to $33 billion for natural gas generation.

Akazawa said on September 4 that AI and semiconductors would carry "very significant weight" in later discussions, but gave no details. Thursday's report identifies a potential chip project consistent with that priority. It remains a proposal, with no agreement announced.

What the project could mean for GlobalFoundries

GlobalFoundries stopped its 7-nanometer development in 2018 and moved to mature and specialty processes. Its chips go into cars, phones and industrial equipment, and into aerospace and defense work.

The company has already secured US government funding for a separate project. On September 8, it finalized a $375 million award for quantum chip production. The proposed plant would involve a much larger investment, although the reporting does not specify how much GlobalFoundries would contribute.

What remains unresolved

The next real marker would be an announcement naming a site and a financing split. Neither exists yet.

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Frequently asked questions

Where would the plant be built?

In the United States. The reporting does not name a state or a site. It would be funded as one of Japan's investment projects under the tariff agreement, which is why the money is Japanese even though the factory is American.

How much would it cost?

Up to about $19 billion, according to Nikkei. Reuters put the range at 2 trillion to 3 trillion yen, roughly $12.9 billion to $19.3 billion, so the $19 billion figure is the top of the range rather than a fixed price.

Has anything been agreed?

No. Nikkei cited officials of both governments familiar with the negotiations, without naming them, and neither government has commented publicly.

What is the $550 billion pledge?

A commitment Japan made under its tariff agreement with the United States, structured as investments, loans and loan guarantees rather than cash, available through the end of Donald Trump's second term. Two rounds worth up to $109 billion have been announced so far.

What kind of chips would the plant make?

Logic chips, which perform computing work, rather than memory chips, which store data. GlobalFoundries specializes in mature and specialty manufacturing processes used in automotive, industrial, aerospace and defense applications rather than in leading-edge processors. This is general information, not investment advice.