Japan to finance two new chip plants in the US
The first plant is due to begin operating in 2029; the investment could later rise from 10 to 21 billion dollars.
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Japan and the United States have reached an agreement on the construction of two new chip plants in New York state. GlobalFoundries will be the technology partner and operator of the project, which forms part of broader economic cooperation between the two countries.
The initial investment amounts to approximately 10 billion dollars, according to Japan’s Ministry of Foreign Affairs. Construction is due to begin this year and the first plant is expected to become operational in 2029. A second plant could later raise the total investment to approximately 21 billion dollars.
The plants will be built at GlobalFoundries’ existing site in Malta, near Albany. The company makes so-called mature-node chips there: less advanced chips used, among other things, in cars, industrial machinery, smartphones and data centres.
GlobalFoundries says that each plant could eventually produce approximately 900,000 wafers a year. The company also expects around 27,000 jobs during construction and more than 1,000 specialised production jobs. These are GlobalFoundries estimates, not an independent labour-market forecast.
Japan is financing the project, while GlobalFoundries is providing technology and manufacturing expertise. Japanese companies such as Tokyo Electron, SCREEN Holdings and Tokyo Ohka Kogyo are interested in supplying equipment, materials and components, according to Japan’s ministry. Renesas may make use of the additional production capacity.
The US government will also take a stake. According to GlobalFoundries, the US Department of Commerce will receive approximately four per cent of the company’s shares. In addition, a previously awarded 955 million dollar grant under the US CHIPS Act will be distributed differently across investments in areas including photonics, materials and advanced packaging.
The agreement forms part of efforts by Washington and Tokyo to become less dependent on concentrated production chains in Asia. It will increase US chip production, but will not immediately resolve all the bottlenecks in the global sector. The plant still has to be built, and the eventual scale of the second investment has not yet been determined.
One story, several perspectives
What is established
- Japan and the United States have reached agreement on a chip project in New York.
- The first phase costs approximately 10 billion dollars, according to Japan; expansion to 21 billion dollars is possible.
- GlobalFoundries will be the technology partner and operator.
Left
Arguments The government may invest strategically in chip production to protect jobs, security of supply and technological independence.
Values Economic equality, public direction and less dependence on vulnerable global supply chains.
Consequences Greater public investment could build industrial capacity, but could also tie up money in projects that perform poorly commercially.
Centre
Arguments The project is defensible if the conditions are transparent, public support demonstrably delivers jobs and security of supply, and implementation remains subject to oversight.
Values Institutional oversight, proportionality and economic resilience.
Consequences A public-private partnership can share risks, but requires clear agreements on costs, ownership and results.
Right
Arguments Chip production is important, but governments should be cautious about subsidies and stakes in companies. Market participants should primarily invest themselves.
Values Market forces, budgetary discipline and limited state involvement.
Consequences Less state support could prevent waste, but could also leave the United States behind countries that actively support industry.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The key facts have been confirmed by Japan’s ministry, GlobalFoundries and AP. Estimates of jobs and production are clearly presented as company expectations.
- confirmed Japan and the United States are launching a chip project in New York. — Confirmed by Japan’s Ministry of Foreign Affairs. source
- confirmed The investment initially amounts to approximately 10 billion dollars and could rise to 21 billion dollars. — Mentioned in Japan’s official communiqué. source
- confirmed GlobalFoundries will be the technology partner and operator of two plants. — Mentioned in GlobalFoundries’ announcement. source
- confirmed The first plant is due to become operational in 2029. — Included in the company statement. source
- confirmed The US Department of Commerce will receive approximately four per cent of the shares. — Mentioned by GlobalFoundries; not independently confirmed by the government. source
Editor's note
The agreement, amounts, location and timetable have been confirmed by Japan and GlobalFoundries. Jobs and production capacity are company estimates; the second investment and full scale remain dependent on further implementation.Sources
- Semiconductor Manufacturing Project to be Implemented under the Japan-U.S. Strategic Investment Initiative — Ministry of Foreign Affairs of Japan
- GlobalFoundries selected to operate two new semiconductor fabs in New York — GlobalFoundries
- GlobalFoundries to open 2 new chip plants in New York — Associated Press
More on this in Dutch media
- De Telegraaf — „chips japan”
- Trouw — „chips japan”
- RTL Nieuws — „chips japan”