Japan to invest up to $21 billion in two U.S. chip factories to be run by GlobalFoundries
The move is part of a deal for Japan to invest $550 billion in the U.S. struck by President Donald Trump's administration last year.
Japan plans to invest up to $21 billion in the construction of two new semiconductor factories in New York state, which will be jointly owned by the U.S. government and Japanese entities. The factories will be operated by GlobalFoundries, a company based in Malta, New York. The company's stock saw a nearly 5 percent increase in premarket trading following the announcement.
Its value has risen more than 33 percent so far this year. This investment is part of a broader agreement where Japan will allocate $550 billion to the U.S., following a deal struck by the Trump administration in 2020. In exchange for lowering tariffs on Japanese imports from 25 percent to 15 percent, the U.S. will acquire a stake in the new chip factories.
The U.S. government will also hold a 4 percent stake in GlobalFoundries, increasing its overall ownership of the company. GlobalFoundries, which is majority-owned by Abu Dhabi's sovereign wealth fund Mubadala Investment Co, will generate revenue from building, operating the factories, and licensing chip manufacturing technology to them.
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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