GlobalFoundries to build two chip plants with up to $21 billion from Japan

GlobalFoundries will build and operate two new semiconductor factories in upstate New York using up to $21 billion in capital provided by Japan. The factories will be jointly owned by Japanese interests and the U.S. government, which is also taking a 4% equity stake in GlobalFoundries to raise its total holding to 7%. The funding stems from a broader $550 billion U.S.-Japan trade deal negotiated by President Donald Trump. Initial customers include Apple and Renesas Electronics, with priority given to U.S. and Japanese firms.

GlobalFoundries New York factory plans and ownership

• ▪GlobalFoundries plans to build and operate two new semiconductor chip factories at its site in upstate New York, funded with up to $21 billion provided by Japan
• ▪The two proposed New York chip factories to be operated by GlobalFoundries will be jointly owned by the U.S. government and Japanese interests, with Japan providing all of the investment capital

Terms of the US-Japan investment agreement

• ▪Under the U.S.-Japan $550 billion investment agreement, President Donald Trump selects the specific projects to be funded by Japan
• ▪Japan's $21 billion investment in the New York chip plants operated by GlobalFoundries is part of a $550 billion U.S. investment deal struck by President Donald Trump's administration in exchange for lower tariffs on Japanese imports
• ▪Free cash flows from the U.S.-Japan $550 billion investments will be split evenly between both countries until a specific allocation is reached, after which 90% will go to the U.S.

Factory output and customer priorities

• ▪GlobalFoundries CEO Tim Breen stated that the company will give priority to U.S. and Japanese customers for the output of its new New York factories
• ▪Initial planned customers for GlobalFoundries' two new semiconductor factories in New York include Japan's Renesas Electronics and Apple

Ownership stakes in GlobalFoundries

• ▪GlobalFoundries is majority-owned by Abu Dhabi's sovereign wealth fund Mubadala Investment Co.
• ▪GlobalFoundries CEO Tim Breen said the U.S. government will take a 4% stake in GlobalFoundries, bringing its total ownership stake in the chipmaker to approximately 7%