GlobalFoundries tapped to run 2 new chip plants backed by $21 billion from Japan

Japan announced plans to invest up to $21 billion in two chip manufacturing facilities in New York state, to be jointly owned by the US government and Japanese interests and operated by GlobalFoundries. The move, part of a $550 billion investment deal struck by the Trump administration last year, sees Japan provide all of the investment capital while the US takes a stake.

GlobalFoundries, a Malta, New York-based company, will earn fees from building and operating the factories and licensing chip manufacturing technology to them. The US government will hold a 4% stake, bringing its total ownership to about 7%. Initial customers for the New York factories are expected to include Japan's Renesas Electronics and Apple.

GlobalFoundries CEO Tim Breen stated that the company would prioritize US and Japanese customers, but other companies may also be part of the demand. Japan has announced two batches of projects worth over $100 billion under the investment scheme, with free cash flows from investments to be split evenly between the two countries initially, and 90% going to the US after a specific allocation is reached.