GlobalFoundries Plans $21 Billion Semiconductor Fab Expansion in New York, US With Japanese Funding

GlobalFoundries has been chosen to serve as the technology provider and operator for two new 300mm semiconductor fabrication plants at its Malta, New York, campus, the company announced on Oct. 14, 2026.

U.S.-Japan initiative to boost semiconductor manufacturing capacity

The selection comes under a U.S.-Japan initiative backed by up to USD 21 billion in funding, made possible by President Donald J. Trump's trade and investment agreement with Japan.

Under the arrangement, Japan supplies the investment capital, while GF contributes its technologies, manufacturing expertise, and operational capabilities to run the facilities.

The initiative, according to the company, is designed to speed the development of trusted semiconductor manufacturing capacity in the United States, reinforce critical supply chains, and serve demand from automotive, industrial, and connected infrastructure markets.

Tim Breen, CEO of GlobalFoundries, said the selection reflects more than the availability of capital. "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," Breen said.

"GF was selected because fabs of this scale require more than capital. They require differentiated technology, operational excellence, and a proven ability to execute. That combination is what positions GF to make this first-of-its-kind initiative a success."

Two plants, roughly USD 10 billion each, aim for vast wafer output

The funding is structured in two phases. An initial investment of approximately USD 10 billion will accelerate construction of the first new 300mm fab, which is expected to come online in 2029. A further investment of approximately USD 10 billion would then fund a second fab.

Together, the two facilities are expected to add significant new U.S. manufacturing capacity.

Once fully operational, the first fab is projected to contribute approximately 900,000 300mm wafers of annual U.S. manufacturing capacity, with the second fab adding roughly the same amount again.

Employment effects are expected to be substantial: the project is anticipated to generate about 27,000 construction and ecosystem jobs, along with more than 1,000 high-skilled manufacturing positions in New York's Capital Region.

Secretary of Commerce Howard Lutnick tied the announcement directly to the administration's trade agenda. "President Trump's historic U.S.-Japan Trade Deal is delivering another massive manufacturing investment into America," Lutnick said.

"With Japan's investment funding and GlobalFoundries' partnership, two large semiconductor chip manufacturing facilities will be built in the U.S., creating thousands of high-paying jobs for American workers. This is how the President's trade agreements result in transformational American industrial assets that strengthen our national and economic security."

Shovel-ready Malta site targets groundbreaking before year's end

Construction timelines are already taking shape. GF expects to break ground on the first fab at the Malta site later this year, and it described the location as permitted and shovel-ready.

By drawing on existing infrastructure at Malta, the company intends to compress the construction schedule. Details of a groundbreaking event will be announced separately.

Grant McEwan, general manager of Fab 8 at GlobalFoundries, emphasized the site's history in making the case for the expansion. "Since 2009, the people of this site have built one of the nation's most advanced semiconductor manufacturing operations," McEwan said.

"These two great countries entrusting GF to operate two new fabs is a powerful vote of confidence in our workforce, our technology, and New York's Capital Region. With the potential to create thousands of new jobs, we are working with education and workforce partners to build the next generation of semiconductor talent."

USD 955 million CHIPS reallocation steers funds toward photonics and packaging

Alongside the fab announcement, GF has reached an agreement with the U.S. Department of Commerce to amend its existing award under the CHIPS and Science Act.

The amendment reallocates USD 955 million to accelerate the company's investments in silicon photonics, silicon-germanium (SiGe), and advanced packaging at its facilities in Malta, New York, and Burlington, Vermont.

The company said these investments will expand domestic manufacturing capacity for technologies it described as increasingly critical to communications infrastructure and data centers. In a separate agreement tied to the amendment, the U.S. Department of Commerce will take an equity stake of approximately four percent in GF.

The company said this arrangement further enables the American public to share in GF's growth.

Albany region's ecosystem backed by the state Green CHIPS program

Support from New York State continues through the Green CHIPS program, which underpins the Capital Region's semiconductor ecosystem.

Governor Kathy Hochul characterized the expansion as "a tremendous vote of confidence in New York's world-class workforce, innovation ecosystem, and the Capital Region's growing role as a global hub for semiconductor manufacturing and innovation."

Hochul also pointed to the international dimension of the project. "We also look forward to working with the Government of Japan and partnering with their world-leading semiconductor supply chain ecosystem in the years to come," she said.

"This investment will create thousands of construction jobs, support more than 1,000 highly skilled manufacturing jobs and reinforce New York's position as a global hub for the semiconductor industry."

Renesas plans around the coming New York wafer supply

The new capacity is being positioned around long-standing customer relationships spanning the United States and Japan.

Hidetoshi Shibata, CEO of Renesas, said his company is already planning around GF's new New York capacity as an extension of its own production footprint. "Trusted U.S.-based manufacturing backed by a strong U.S.-Japan partnership," Shibata said.

"This expanded collaboration further strengthens the stable, long-term supply of semiconductors with the differentiated technologies, quality, and reliability our products require. These capabilities are essential as we deliver advanced solutions, with demand for electrification, connectivity, AI, and data center applications accelerating worldwide."

GF also highlighted the part played by its wider partner network, noting that resilient semiconductor manufacturing rests on a trusted ecosystem of equipment and technology partners rather than any single company operating alone.