GlobalFoundries Investment will bring $21 billion to expand semiconductor manufacturing in New York state through a major US-Japan initiative. The project involves GlobalFoundries, a chipmaker majority-owned by Abu Dhabi’s Mubadala Investment Company. It will establish two new semiconductor manufacturing plants to strengthen America’s domestic chip production. Moreover, the initiative aims to create thousands of jobs while expanding advanced manufacturing capacity.
Japan will provide an initial $10 billion to support construction of the first facility. The plant already has the necessary permits, and developers expect completion by 2029. Japan will allocate another $10 billion toward developing a second manufacturing facility. Together, these investments will support a significant expansion of semiconductor production in the United States.
GlobalFoundries will contribute its manufacturing technology and operational expertise to both projects. The company will also manage and operate the new facilities once construction finishes. Chief Executive Officer Tim Breen highlighted the importance of technical capabilities alongside financial investment. He explained that projects of this scale require specialized technology and strong operational performance.
Each new plant could produce nearly one million 300-millimeter silicon wafers annually at full capacity. Manufacturers use these wafers to produce large volumes of microchips for different industries. Consequently, the expansion could strengthen supply chains for electronics, computing, and other technology applications. It could also help meet growing demand for chips used in artificial intelligence systems.
The project is expected to generate approximately 27,000 direct and indirect jobs during construction. Additionally, the facilities will create more than 1,000 highly skilled manufacturing positions. These opportunities could benefit local communities through employment and supporting business activity. Furthermore, the investment will expand the region’s role in the global semiconductor industry.
GlobalFoundries Investment also includes a larger financial role for the US government. The US Commerce Department will receive an additional equity stake of approximately 4% in the company. This increase will bring the government’s total ownership to around 7%. The arrangement reflects Washington’s continued efforts to strengthen domestic semiconductor production.
The US government is also revising a previous award worth nearly $1 billion for GlobalFoundries. The revised agreement will accelerate investments in advanced semiconductor technologies. These upgrades will support the company’s existing facilities in Malta, New York, and Burlington, Vermont. Therefore, the latest initiative combines new manufacturing capacity with improvements to existing operations.
Japan’s contribution forms part of a broader trade agreement with the United States. Under the arrangement, Japan pledged $550 billion in investment across the American economy. In return, the agreement offers Japan lower US tariffs. The semiconductor projects represent one part of this wider economic partnership.
Meanwhile, GlobalFoundries continues to pursue additional opportunities in the American semiconductor market. The company recently agreed to a $2 billion arrangement with Taiwan’s TSMC. The deal will support US production of silicon interposers, which connect AI processors with memory chips. These components play an important role in advanced computing systems.
Global semiconductor manufacturers are also planning substantial capacity expansions worldwide. Industry forecasts indicate that many new 300-millimeter fabrication plants will begin construction during 2026 and 2027. At the same time, spending on manufacturing equipment continues to rise. These developments reflect growing demand for advanced chips across technology industries.
GlobalFoundries Investment highlights Mubadala’s involvement in a major international manufacturing expansion. The initiative combines Japanese funding, US government participation, and the company’s technical capabilities. Ultimately, the two plants could strengthen American chip production while supporting employment and technological development.
