Japan to invest up to $21 billion in two US chip factories to be run by GlobalFoundries
Japan will invest up to $21 billion in two chip factories in New York state that will be jointly owned by the U.S. government and Japanese interests and operated by GlobalFoundries, the company said on Wednesday. Shares of the Malta, New York-based company rose nearly 5 percent in premarket trading. As of last close, the stock had gained more than 33 percent so far this year. The move is part of…
Japan has pledged to invest up to $21 billion in two chip manufacturing facilities that will be co-owned by the United States government and Japanese entities, with operations overseen by GlobalFoundries. Shares of the New York-based firm surged nearly 5% in early trading, having gained over 33% this year to date. This investment is part of a $550 billion deal struck by the Trump administration, which in exchange for reduced tariffs on Japanese imports, will see the U.S. stake in the new chip plants.
While the U.S. will have a share in the new chip factories, Japan will be responsible for the entire investment capital. GlobalFoundries, primarily owned by Abu Dhabi's sovereign wealth fund Mubadala Investment Co, will generate income from construction, operation, and licensing of chip manufacturing technology to the facilities.
Additionally, the U.S. government will hold a 4% stake in GlobalFoundries, bringing its overall ownership to a total of 4%.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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