Trump Announces $21B Japan-Funded Semiconductor Deal in New York
President Trump unveils historic $21 billion semiconductor deal with Japan, creating thousands of jobs and boosting U.S. manufacturing.
2 min read
President Donald Trump has announced a historic $21 billion semiconductor expansion project in Malta, New York, funded through a trade and investment framework between the United States and Japan. The initiative, spearheaded by GlobalFoundries Inc., aims to establish two giant manufacturing facilities to revitalize the U.S. industrial base and bolster national security.
Japan Funds $21B Investment
Under the agreement negotiated by the Trump administration and U.S. Commerce Secretary Howard Lutnick, Japan will provide up to $21 billion in capital financing to fund the construction of two 300mm chip fabrication plants. The first facility is scheduled to begin construction later this year on a permitted, shovel-ready site, with target operations beginning in 2029. The second facility of similar scale will follow shortly after.
Job Creation and Equity Stake
The project is projected to generate roughly 27,000 construction and supply-chain jobs, alongside more than 1,000 high-skilled manufacturing positions in New York’s Capital Region. The U.S. government will receive an approximate 4% equity stake in GlobalFoundries, giving taxpayers a direct share in corporate growth.
Advanced Technology Investments
The Department of Commerce and GlobalFoundries have amended existing CHIPS and Science Act terms to reallocate $955 million toward advanced technologies, including silicon photonics, silicon-germanium, and advanced packaging, at the company’s facilities in New York and Vermont. This brings total U.S. direct technology investments into the firm to $1.63 billion.
GlobalFoundries’ Commitment
“This is a bold new initiative for semiconductor manufacturing, bringing together the United States and Japan with GF’s differentiated technology and decades of manufacturing expertise to accelerate trusted capacity in New York,” said Tim Breen, CEO of GlobalFoundries. “GF was selected because fabs of this scale require more than capital. They require differentiated technology, operational excellence and a proven ability to execute. That combination is what positions GF to make this first-of-its-kind initiative a success.”
Commerce Secretary’s Statement
“President Trump’s historic U.S.-Japan Trade Deal is delivering another massive manufacturing investment into America,” said Secretary of Commerce Howard Lutnick. “With Japan’s investment funding and GlobalFoundries’ partnership, two large semiconductor chip manufacturing facilities will be built in the U.S., creating thousands of high-paying jobs for American workers. This is how the President’s trade agreements result in transformational American industrial assets that strengthen our national and economic security.”
Profit-Sharing Model
Revenue generated from the Japanese-funded facilities will feature a profit-sharing model, splitting surplus cash flow equally between the U.S. and Japan until set thresholds are reached, after which 90% of returns will accrue to the U.S. Treasury.
Source: OANN
