GlobalFoundries (GF), a major chip manufacturer, has been chosen to run two new semiconductor factories, or “fabs”, at its site in Malta, New York. The plan sits under a US–Japan initiative that provides up to $21 billion in funding.
In a release on 14 October 2026, GF said it had been “selected as the technology provider and operator” for the two fabs. Japan will provide the investment, while GF will contribute its technology and manufacturing know-how. GF named the main markets for the chips as automotive, industrial and connected infrastructure. It did not describe the fabs as AI-only plants.
The first fab, and a second that is not yet firm
“An initial investment of approximately $10 billion will accelerate construction of a new 300mm semiconductor fab, which is expected to come online in 2029,” GF said. A 300mm fab makes chips on the larger, industry-standard wafers.
“An additional investment of approximately $10 billion would fund a second fab,” GF said. The wording makes the second plant conditional. GF expects the first fab, when fully running, to add about 900,000 300mm wafers of annual US capacity, and said a second “would add approximately the same amount”.
The project is expected to create about 27,000 construction and supply-chain jobs and more than 1,000 skilled manufacturing jobs in New York’s Capital Region. GF expects to break ground on the first fab later this year and says the site is already permitted.
“This is a bold new initiative for semiconductor manufacturing, bringing together the United States and Japan with GF’s differentiated technology and decades of manufacturing expertise to accelerate trusted capacity in New York,” said Tim Breen, GF’s chief executive.
US commerce secretary Howard Lutnick said in the release: “With Japan’s investment funding and GlobalFoundries’ partnership, two large semiconductor chip manufacturing facilities will be built in the U.S.”
The CHIPS Act change and the US stake
Separately, GF has agreed with the US Department of Commerce to amend its existing award under the CHIPS and Science Act. It will reallocate $955 million to speed up investments in silicon photonics, silicon-germanium (SiGe) and advanced packaging at Malta and at its plant in Burlington, Vermont. GF says those technologies matter for communications networks and data centres.
In another agreement, Commerce “will receive equity in GF of approximately four percent”, so the US government will own a small share of the company.
What this means
- Japan is putting money into US chip plants. GF runs them; Japan funds them, up to the $21bn ceiling.
- The second fab is not locked in. GF’s own wording treats it as something that “would” be funded.
- Washington takes a stake. About 4% equity, plus a redirected CHIPS grant, ties the project to US policy.
Sources
- GlobalFoundries, “GlobalFoundries selected to operate two new semiconductor fabs in New York under landmark U.S.-Japan initiative”, 14 October 2026. https://gf.com/news-and-events/news/globalfoundries-selected-to-operate-two-new-semiconductor-fabs-in-new-york-under-landmark-us-japan-initiative/
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