The state-of-the-art plants in Malta will boost semiconductor manufacturing through a landmark bilateral trade agreement between the US and Japan.
GlobalFoundries is set to construct two new semiconductor fabrication plants in Malta, New York. The project is backed by up to $21 billion in funding provided entirely by Japan.
The deal is part of a broader $550 billion Japanese investment pledge negotiated under the Donald Trump administration. In exchange, the US lowered tariffs on Japanese automotive and industrial imports from 25 per cent to 15 per cent.
Japan is supplying all required investment capital, while the US government will retain an equity stake in the facilities. GlobalFoundries will earn fees for building and operating the plants, as well as licensing its chip technologies.
The US Department of Commerce will also acquire a 4 per cent equity stake in GlobalFoundries, bringing its total holding to roughly 7 per cent. Abu Dhabi’s sovereign wealth fund, Mubadala Investment Co, remains the majority owner.
Additionally, GlobalFoundries has restructured its CHIPS Act award to direct $955 million towards advanced packaging and silicon photonics in New York and Vermont.
Construction on the first $10 billion plant will accelerate towards a 2029 target, to build a 300nm fab, with a second $10 billion plant to follow. Each facility will produce around 900,000 wafers annually.
The expansion is expected to create over 1,000 skilled manufacturing jobs and 27,000 construction roles, drawing support from key customers like Apple.
