GlobalFoundries selected to operate two New York fabs under $21bn initiative

GlobalFoundries has been selected to provide technology and operate two semiconductor factories in Malta, New York, under a US–Japan initiative involving up to $21bn of investment.

Japan would provide the investment, with GlobalFoundries supplying manufacturing technology and operating expertise. An initial commitment of approximately $10bn would fund the first 300mm fab, which is expected to begin operating in 2029.

At full production, that factory would have annual capacity of approximately 900,000 wafers. A further investment of around $10bn would support a second fab of comparable scale.

The development would expand US production serving markets including automotive electronics, industrial equipment and connected infrastructure. Groundbreaking is expected later this year at an already permitted site.

The arrangement also includes a revised allocation of GlobalFoundries’ $955m CHIPS award towards silicon photonics, silicon germanium and advanced packaging work in Malta and Burlington, Vermont.

Separately, the US Department of Commerce is expected to take an equity interest of approximately 4% in GlobalFoundries. [Source 1]