Japan is set to invest up to $21 billion in two semiconductor manufacturing facilities in New York State, marking a major development in US-Japan cooperation on advanced manufacturing and technology. The factories will be operated by US-based chipmaker GlobalFoundries and are intended to expand domestic chip production while strengthening supply chains for critical industries. The announcement was made on October 14, 2026.
The investment is part of a broader US-Japan economic agreement under which Japan committed to invest $550 billion in the United States. The initiative reflects growing efforts by governments to secure semiconductor supplies, attract manufacturing investment, and support industries that depend on reliable access to chips.
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Two New Chip Factories Planned for New York
The planned semiconductor facilities will be built at GlobalFoundries’ site in Malta, New York. Japan will provide the investment capital, while GlobalFoundries will contribute its manufacturing technology, operational expertise, and customer relationships.
The initial investment of approximately $10 billion will support construction of the first 300-millimeter semiconductor fabrication plant, which is expected to begin production in 2029. A further investment of around $10 billion is planned for a second facility, with the partners expected to decide whether to proceed before the end of 2028.
Once fully operational, each factory is expected to add annual manufacturing capacity of approximately 900,000 300-millimeter wafers. The first facility alone is expected to create more than 1,000 skilled manufacturing jobs in New York’s Capital Region.
Apple and Renesas Among Potential Customers
The new facilities are expected to support demand from major technology and industrial companies. GlobalFoundries identified Apple and Japan’s Renesas Electronics among the initial customers for the New York factories.
Semiconductors are essential to a wide range of products, including smartphones, vehicles, communications equipment, and industrial systems. Reliable production capacity is particularly important as demand grows for computing infrastructure, artificial intelligence applications, and connected technologies.
The factories are expected to strengthen US manufacturing capacity for these markets and provide customers with an additional source of domestically produced chips.
Japan-US Investment Agreement Drives the Project
The semiconductor initiative forms part of the wider investment framework agreed between Japan and the United States under the Trump administration. The broader agreement involves a Japanese investment commitment of $550 billion and was linked to a reduction in US tariffs on Japanese imports, including automobiles.
The project also includes a change in the US government’s ownership interest in GlobalFoundries. According to Reuters, the government’s stake is expected to rise from 3% to 7%, while Japan will supply all of the capital for the new factories. GlobalFoundries will earn fees for building and operating the facilities and licensing manufacturing technology.
The arrangement illustrates how industrial policy, international investment, and corporate partnerships are increasingly being used to expand strategically important manufacturing sectors.
Japanese Technology Companies Could Also Benefit
The investment may create opportunities for Japanese companies that supply semiconductor manufacturing equipment and related technologies. GlobalFoundries has indicated that Japanese suppliers, including Tokyo Electron, could participate in the project’s supply chain.
This could help Japanese businesses gain additional opportunities in the global semiconductor industry while supporting the expansion of chip production in the United States.
The agreement also includes plans to redirect $955 million from previously awarded US government funding toward technology upgrades at existing GlobalFoundries facilities in New York and Vermont. These investments will support areas such as silicon photonics, silicon-germanium materials, and advanced packaging.
1. Strengthening Semiconductor Supply Chains
Expanding chip production in the United States could reduce supply-chain vulnerabilities and provide greater manufacturing capacity for essential industries.
2. Supporting AI and Data Centre Growth
Artificial intelligence and data centres require substantial computing power, increasing demand for semiconductors and related technologies.
3. Creating Jobs and Industrial Opportunities
The factories are expected to generate skilled manufacturing employment and create additional opportunities for construction firms, equipment suppliers, and supporting businesses.
4. Deepening Japan-US Technology Cooperation
The project brings together Japanese capital, US investment policy, and GlobalFoundries’ manufacturing expertise to expand a strategically important industry.
Japan’s planned investment of up to $21 billion in two GlobalFoundries semiconductor factories represents a significant step in US-Japan technology and manufacturing cooperation. With the first facility expected to begin production in 2029, the project could expand American chipmaking capacity, support major customers, and open opportunities for Japanese equipment suppliers.
As demand for semiconductors continues to grow across AI, automotive, communications, and industrial markets, the initiative highlights the increasing importance of international partnerships in building resilient technology supply chains.
