Japan to invest up to $21 billion in two US chip factories to be run by GlobalFoundries

Japan is planning to invest up to $21 billion in two chip factories located in New York state, operated by GlobalFoundries, a company based in Malta, New York. The US government will also hold a stake in the factories. This investment is part of a deal struck by the Trump administration, which saw Japan invest $550 billion in the US in exchange for lowering tariffs on Japanese cars and other imports.

The US will take a 4% stake in GlobalFoundries, increasing its total ownership to approximately 7%. The company's CEO, Tim Breen, stated that they aim to prioritize US and Japanese customers, with potential future customers including other companies. Japan's investment will contribute to chip-manufacturing toolmakers and engage with the Japanese ecosystem, which has great technologies.