Japan will invest about US$21 billion in up to two chip plants in New York that will be jointly owned by the US government and Japanese interests. GlobalFoundries, a US semiconductor manufacturer based in Malta, New York, will operate the facilities the company said.

The project is part of Japan’s US$550 billion investment agreement with the US, under which US tariffs on Japanese cars and other imports will fall from at least 25% to 15%.

Construction of the first plant is scheduled to start in 2026, with production expected in 2029.

CEO Tim Breen said the US government’s stake in GlobalFoundries will rise from 3% to 7%. Japan will provide all project investment capital. Initial customers include Renesas Electronics, a Japanese chipmaker, and Apple, Breen said.

GlobalFoundries’ New York operations are listed under the US CHIPS program. The company previously announced a funding award agreement under the US CHIPS and Science Act.

Renesas and GlobalFoundries also expanded their partnership in February 2026 to accelerate US semiconductor manufacturing.

🔗 Source: Reuters

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