Japan to Invest $21 Billion in Two US Chip Factories

Japan plans to invest up to $21 billion in two new semiconductor factories in New York, with GlobalFoundries selected to provide the technology and operate the facilities, according to an announcement on October 14, 2026.

The project will be based at GlobalFoundries’ existing site in Malta, New York. Japan will provide the investment capital, while the facilities will be jointly owned by US government and Japanese interests.

Why the Investment Matters

The new factories are intended to expand US semiconductor manufacturing and strengthen supply chains for industries that rely on chips, including automotive, industrial equipment, and connected devices.

The investment forms part of a broader US-Japan economic agreement involving up to $550 billion in Japanese investment in the United States. The initiative reflects growing efforts to secure domestic chip production and reduce supply-chain vulnerabilities.

GlobalFoundries will contribute its manufacturing expertise and semiconductor technologies to the project. Construction and production timelines for the new facilities will determine how quickly the investment translates into additional chipmaking capacity.

Sources

• GlobalFoundries — Official Announcement
• Reuters — Japan's $21 Billion Chip Factory Investment