News from the IT Home on October 14th: GlobalFoundries ( GlobalFoundries, GF ) has just announced that it has been selected as the technology provider and operator for two new semiconductor manufacturing facilities in Malta, New York State, USA.
This project is part of a $550 billion investment agreement previously reached between the United States and Japan. In addition to the new factory, GlobalFoundries has also reached an agreement with the U.S. Department of Commerce to reallocate $955 million in funds obtained under the Chips and Science Act, and to allocate approximately 4% of GlobalFoundries' equity to the U.S. Department of Commerce, raising its total stake in GlobalFoundries to around 7%.
The project is driven by trade and investment agreements between the United States and Japan, with Japan providing up to $21 billion in investment to expand semiconductor manufacturing capacity in the United States.
According to GlobalFoundries' announcement, the initial investment of about $10 billion will be used to accelerate the construction of a new 300-millimeter wafer factory, which is expected to begin production in 2029. Another approximately $10 billion will be invested in building a second wafer factory. Once both factories are fully constructed and operational, they will add substantial semiconductor manufacturing capacity to the United States.
Tim Brin ( Tim Breen ) of GlobalFoundries ( CEO ) stated that this project combines the cooperation between the United States and Japan with GlobalFoundries' technical and manufacturing expertise in order to accelerate the construction of semiconductor manufacturing capacity in New York State. He pointed out that large-scale wafer factory projects require not only funding but also differentiated technologies, operational capabilities, and proven execution experience.
In terms of production capacity, GlobalFoundries expects that after the first wafer factory is fully operational, it will be able to add about 900,000 units of 300-millimeter wafer manufacturing capacity per year; once the second factory is completed, it is also expected to increase production capacity by a similar amount. The company estimates that this project will create approximately 27,000 jobs related to construction and the industrial ecosystem, as well as more than 1,000 high-skilled manufacturing positions in the region surrounding the capital of New York State.
In addition to building new wafer factories, GlobalFoundries also reached an agreement with the U.S. Department of Commerce to adjust its existing funding arrangements under the Chips and Science Act. As a result, $955 million of this funding will be reallocated to accelerate investments in silicon photonics, silicon germanium ( SiGe ), and advanced packaging at its facilities in Malta, New York, and Burlington, Vermont. These projects will expand the manufacturing capacity for related technologies in the United States to meet the demands of the communication infrastructure and data center sectors.
TSMC also stated that under another agreement, the US Department of Commerce will acquire approximately 4% of TSMC's equity, allowing the American public to share in the benefits of the company's future growth.
GlobalFoundries plans to hold a groundbreaking ceremony for its first new wafer factory in Malta, New York State, later in 2026. The company stated that the site has obtained the necessary permits and is ready to begin construction, and it will utilize the existing local infrastructure to accelerate the construction process.
In terms of industrial cooperation, Renesas Electronics, Tokyo Electron, Apple, Cirrus Logic, and General Motors have all responded to this expansion plan. Renesas Electronics' CEO, Eiichi Chiba, stated that the company plans to incorporate TSMC's newly added production capacity in New York State into its own manufacturing layout in order to strengthen its domestic manufacturing capabilities in the United States and ensure long-term chip supply. Tokyo Electron's CEO, Toshiaki Kawahashi, stated that the company will continue to support TSMC in expanding its semiconductor production capacity in the U.S.
Apple's Chief Operating Officer Sabih Khan stated that Apple has collaborated with TSMC to produce the key chips required for manufacturing Apple products in the United States. This new investment will further promote the development of the US semiconductor manufacturing ecosystem. General Motors President Mark Reuss pointed out that with the advancement of autonomous driving, centralized computing, and artificial intelligence functions in vehicles, the automotive industry requires more powerful processing capabilities as well as a more resilient semiconductor supply chain.
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