Japan to fund up to $21 billion for New York chip plants
Japan will put up to $21 billion into two new chip plants in Malta, New York, Kyodo News reported. GlobalFoundries will run the plants, and the first one is due to start making chips in 2029. The deal is part of a U.S.-Japan trade agreement made last year.
Japan will invest up to about $21 billion in two new computer chip factories in Malta, New York, to be run by GlobalFoundries, Kyodo News and Reuters reported.
Japan's trade minister, Ryosei Akazawa, said Thursday that it is the third project launched under a trade deal the two countries reached last year in exchange for lower U.S. tariffs, Kyodo reported. Under that deal, Japan agreed to invest $550 billion in the United States, Reuters reported.
The first plant will cost about $10 billion and is expected to start production in 2029, Kyodo reported. The partners will decide before the end of 2028 whether to build the second plant, Reuters reported.
The plants will be jointly owned by the U.S. government and Japanese interests, with Japan providing all of the investment money, Reuters reported. Executives said the deal will bring GlobalFoundries fees for at least 20 years, the news agency reported.
The U.S. government's stake in GlobalFoundries will rise from 3% to 7%, CEO Tim Breen told Reuters. Early customers include Japan's Renesas Electronics and Apple, Breen said.
The factories will make mature-node chips used in cars, industrial machines, smartphones and AI data centers, Kyodo reported. Japanese firms such as Tokyo Electron and Screen Holdings have shown interest in supplying equipment, Japan's trade ministry said.
President Donald Trump has said on social media that the project would create 27,000 construction and supply-chain jobs and more than 1,000 skilled factory jobs in New York, Kyodo reported.
GlobalFoundries shares rose more than 4% on Wednesday, Reuters reported.
What we know: Japan will fund up to about $21 billion for two GlobalFoundries-run plants in Malta, New York.
What we don't: Whether the second plant will be built, and how many jobs the project will actually create.
Where outlets agree Kyodo News and Reuters both report that Japan will invest up to about $21 billion in two GlobalFoundries-run plants in New York.
Where they differ The outlets cited here report the same key facts so far.