GlobalFoundries has been selected to operate two proposed semiconductor fabrication plants in Malta, New York, under a U.S.-Japan initiative providing up to $21 billion in investment to expand U.S. chip manufacturing capacity.
Announced on October 14, 2026, the initiative will see Japan provide the investment capital, while GlobalFoundries supplies the technology and operational expertise. The first fab is expected to receive approximately $10 billion, with construction expected to begin later in 2026 and operations targeted for 2029. A second fab would require an additional investment of approximately $10 billion.
The initiative forms part of a broader U.S.-Japan investment agreement under which Japan committed to invest $550 billion in the United States.
GlobalFoundries’ New Semiconductor Fabs in New York
The first facility is expected to add approximately 900,000 300-millimeter wafers of annual manufacturing capacity. If both fabs proceed, their combined capacity could reach 1.8 million wafers annually.
The overall initiative is projected to generate approximately 27,000 construction and semiconductor-industry ecosystem jobs, alongside more than 1,000 high-skilled manufacturing jobs in New York’s Capital Region, according to GlobalFoundries.
According to Reuters, initial customers for the new facilities include Apple and Japan’s Renesas Electronics. General Motors and Cirrus Logic are also part of GlobalFoundries’ wider customer ecosystem, although their existing relationships do not confirm production allocations at the new fabs.
The facilities are expected to be jointly owned by U.S. and Japanese interests and operated by GlobalFoundries, which will earn fees for providing technology and manufacturing services. The company has also expressed interest in involving Japanese equipment suppliers such as Tokyo Electron, although specific procurement contracts have not been announced.
Separate $955 Million CHIPS Act Amendment
Alongside the new-fab initiative, the U.S. Department of Commerce amended GlobalFoundries’ existing CHIPS and Science Act award, reallocating up to $955 million in incentives to support $5 billion in investment at its existing facilities in Malta, New York, and Burlington, Vermont.
The amendment does not increase the total federal award. The investment will support silicon photonics, silicon-germanium (SiGe) and advanced packaging technologies used in communications infrastructure, data centers and high-performance computing.
This federal agreement is separate from Japan’s funding for the two proposed new fabs.
U.S. Government to Increase Its GlobalFoundries Stake
According to Reuters, GlobalFoundries CEO Tim Breen said the U.S. government would acquire an additional 4% stake in the company, bringing its total ownership to approximately 7%.
The equity arrangement is separate from the ownership structure of the new facilities. GlobalFoundries remains majority-owned by Mubadala Investment Company, the Abu Dhabi sovereign wealth fund.
Advanced Packaging and Related Investments
On October 8, 2026, GlobalFoundries announced a separate multiyear $2 billion agreement with Taiwan Semiconductor Manufacturing Company (TSMC) to manufacture silicon interposers at its Malta facility for TSMC’s advanced packaging ecosystem. These components connect processors and memory chips within advanced packages used in high-performance computing and AI systems.
GlobalFoundries also announced a $16 billion U.S. investment plan in June 2025 covering its New York and Vermont operations. These investments should not automatically be added to the new initiative’s total because their scopes and funding arrangements differ.
Project factsheet: GlobalFoundries new fabs in New York
- Project: Two proposed semiconductor fabs.
- Location: Malta, Saratoga County, New York.
- Operator: GlobalFoundries.
- Announcement: October 14, 2026.
- Potential investment: Up to $21 billion from the U.S.-Japan initiative.
- First fab: Approximately $10 billion; operations targeted for 2029.
- Second fab: Approximately $10 billion, subject to additional investment.
- Capacity: Approximately 900,000 wafers annually per fab.
- Projected employment: 27,000 construction and ecosystem jobs, plus more than 1,000 high-skilled manufacturing jobs.
- Initial customers: Apple and Renesas Electronics, according to Reuters.
- Separate federal investment: $5 billion at existing facilities, supported by an amendment reallocating up to $955 million in existing CHIPS Act incentives.
- U.S. government ownership: Expected to rise to approximately 7%, according to Reuters.
- Majority owner: Mubadala Investment Company.
The GlobalFoundries expansion complements semiconductor research investments such as Applied Materials’ approximately $5 billion EPIC Center in Silicon Valley, California. Unveiled on October 12, 2026, the 600,000-square-foot research and development facility aims to accelerate the development and commercialization of next-generation chipmaking equipment and processes. While GlobalFoundries’ proposed fabs focus on manufacturing capacity, the EPIC Center focuses on technology development, addressing another part of the semiconductor supply chain as demand for AI chips and advanced computing grows.
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