Business
Japan has announced plans to invest up to $21 billion to establish two new semiconductor chip factories in the US state of New York.
Japan has announced plans to invest up to $21 billion to establish two new semiconductor chip factories in the US state of New York. The project will be carried out at GlobalFoundries’ existing industrial campus in Malta, New York. Under the plan, an initial investment of approximately $10 billion will accelerate construction of the first 300-millimeter chip fabrication plant, with production expected to begin in 2029. Around $10 billion will also be allocated for a second factory, although its approval and construction will be decided at a later stage.
Once fully operational, the first factory is expected to produce approximately 900,000 300-millimeter wafers annually and create more than 1,000 highly skilled jobs in New York. The overall project is estimated to generate around 27,000 jobs in construction and related sectors. Japan will provide the funding, while GlobalFoundries will contribute the technology, construction expertise and operational capabilities required for the factories. Initial customers are expected to include Japanese company Renesas Electronics and US technology giant Apple.
The investment is part of a broader $550 billion US investment package agreed between Japan and the administration of US President Donald Trump. The initiative aims to expand domestic production in key industrial sectors, including semiconductors, and strengthen supply chains in the United States.
