Project FinanceData
GlobalFoundries secures $21bn US-Japan funding for two New York chip plants
Abu Dhabi-owned manufacturer will operate facilities under agreement giving US government 7 per cent equity stake.
GlobalFoundries will operate two semiconductor manufacturing plants in New York state under a $21 billion investment agreement between the United States and Japan, the company announced 14 October 2026. The deal includes US government equity participation bringing its stake to 7 per cent. The company is majority owned by Mubadala Investment Company.
Japan provides $21bn capital for two facilities#
Japan will provide the full capital while GlobalFoundries contributes technology, manufacturing expertise and operational capacity. The initial $10 billion will fund construction of a 300mm semiconductor plant expected to begin operations in 2029, with a second $10 billion allocated for a second facility. Each plant will add approximately 900,000 of the 300mm wafers to annual US manufacturing capacity when fully operational. The company manufactures integrated circuits on silicon wafers for AI, high-performance computing, communications infrastructure and aerospace applications.
US government takes 4 per cent additional equity stake#
The Commerce Department will take a 4 per cent equity stake in GlobalFoundries under a separate agreement, chief executive Tim Breen told Reuters. This brings the US government's total holding to 7 per cent. Shares in GlobalFoundries traded 4.9 per cent higher at $48.99 as of 10am ET on the announcement date. The investment forms part of a 2025 deal under which US tariffs on Japanese imports were lowered from 25 per cent to 15 per cent while Japan committed to invest $550 billion in the US economy.
Chips Act award amended to accelerate technology investments#
GlobalFoundries agreed with the Commerce Department to amend its existing Chips Act award, reallocating $955 million to accelerate investments in silicon photonics, silicon-germanium and advanced packaging at its New York and Vermont sites. The announcement followed by one week a separate $2 billion manufacturing agreement GlobalFoundries signed with TSMC. Chief executive Tim Breen stated the agreement brings the United States and Japan together with GlobalFoundries' technology and manufacturing operations to increase semiconductor manufacturing capacity in New York.
Sources1 source across 1 domain
- thenationalnews.comThe NationalGlobalFoundries $21bn US-Japan investment agreement, US government 7% equity stake, Mubadala majority ownership, facility timeline and capacity figures, Chips Act award amendment, TSMC manufacturing agreement
Each source above carries the claim it supports. Links open the publisher's own page; their text is not reproduced here beyond what the claim requires, and their rights remain theirs.
Arabia Tomorrow is published by Arabian Media Network. Pieces are produced by the Infrastructure Capital Desk with AI-assisted synthesis of the cited sources and automated verification against the network's editorial policy. Every piece carries a desk rather than a reporter. Corrections are recorded on the piece and on the corrections page.
Every announced MENA data centre and IPP: announced capacity, financing status, EPC awarded, chip licence status, stated energisation quarter, slip to date in quarters.