Japan is negotiating the financing of a new semiconductor plant in the US to be operated by GlobalFoundries. The project could receive between ¥2 trillion and ¥3 trillion, equivalent to $12.8 billion to $19.3 billion. This allocation would be the largest under Japan’s $550 billion investment pledge, established in a July 2025 bilateral trade agreement.
The trade deal reduced US tariffs on Japanese imports to 15% in exchange for investment commitments to be fulfilled by January 19, 2029. Previous investments under this framework, totaling $109 billion, were primarily directed toward energy and critical minerals. The Japan Bank for International Cooperation is expected to lead the funding structure for this new initiative.
GlobalFoundries, which currently operates facilities in Malta, New York, and Burlington, Vermont, focuses on mature and specialty logic chips. Following reports of the potential deal, the company's shares rose by more than 2% in premarket trading. The firm reported quarterly revenue of approximately $1.8 billion, highlighting the scale of the proposed investment.
The specific location and technology node for the new facility remain undecided. Construction of a plant of this magnitude typically requires three to four years to reach production. While GlobalFoundries has previously secured funding through the CHIPS Act, the potential addition of Japanese capital raises questions regarding subsidy coordination.
