GlobalFoundries Plans Two New Chip Fabs in Malta, New York Under US-Japan Initiative

GlobalFoundries has been selected as technology provider and operator for two new semiconductor fabs at its Malta, New York, campus under a U.S.-Japan trade and investment initiative, the chipmaker announced on October 14.

Japan will provide up to $21 billion for the fabs, with roughly $10 billion for the first 300mm fab and about $10 billion more for a second fab at a later date. GlobalFoundries will contribute technological and manufacturing expertise and operational capabilities. The company expects to break ground on the first fab later this year and open it in 2029.

When fully operational, each fab is expected to add about 900,000 annual 300mm wafers of U.S. capacity and create more than 1,000 skilled manufacturing jobs in the Capital Region. Separately, GlobalFoundries agreed with the Department of Commerce to reallocate $955 million from its existing CHIPS Act award toward silicon photonics, silicon-germanium and advanced packaging at Malta and Burlington, Vermont. The Commerce Department will also receive about a 4% equity stake in the company.

For developers and financiers, the practical takeaway is that a large, long-dated industrial build-out is coming to Malta, so site, utility and workforce planning in the surrounding area should account for a multi-year fab construction cycle.