GlobalFoundries to operate two Japan-funded fabs in New York
GlobalFoundries has been selected to operate two new fabs at its site in Malta, New York, financed by Japan through up to USD 21 billion under the US-Japan trade agreement. In a separate agreement, the US government will also take an equity stake of around 4% in the company.
Japan will provide the funding, while GlobalFoundries contributes its technology and manufacturing expertise as technology provider and operator of the two 300mm fabs, according to a press release from the company. The initiative is made possible by the trade and investment agreement between the US and Japan.
Around USD 10 billion will go towards accelerating construction of the first fab, which is expected to come online in 2029. Another roughly USD 10 billion would fund a second fab. Each fab is expected to add around 900,000 300mm wafers a year to US manufacturing capacity once fully operational. A single fab would thus roughly match the up to 950,000 wafers GlobalFoundries can produce a year at its entire Dresden site. The project is expected to create more than 1,000 high-skilled manufacturing jobs. Ground is set to be broken on the first fab later this year.
“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.”
Alongside the new fabs, GlobalFoundries has agreed with the US Department of Commerce to amend its existing CHIPS Act award, reallocating USD 955 million to speed up investment in silicon photonics, silicon germanium (SiGe) and advanced packaging at its sites in Malta and Burlington, Vermont. In a separate agreement, the Department of Commerce will receive an equity stake of around 4% in the company.
The new capacity is aimed at markets such as automotive, industrial and connected infrastructure, and several customers have already signed on. Japanese chipmaker Renesas sees the fabs as an extension of its own production.
“We are planning around GF’s new capacity in New York as an extension of Renesas’ own production footprint, trusted U.S.-based manufacturing backed by a strong U.S.-Japan partnership,” said Hidetoshi Shibata, CEO of Renesas.
Apple, Cirrus Logic, GM and Tokyo Electron are also named in the release as partners or customers.
