GlobalFoundries said Oct. 14 it plans to build and operate two semiconductor fabs at its Malta, New York, site under an initiative backed by up to $21 billion in Japanese financing for U.S. chip manufacturing capacity. The first 300mm fab carries an approximate $10 billion initial investment and is expected to begin operating in 2029. GlobalFoundries expects to break ground later this year.
What it means
When fully operating, the first fab is expected to add 900,000 wafers of annual U.S. capacity. GlobalFoundries said the project is expected to support 27,000 construction and ecosystem jobs and more than 1,000 high-skilled manufacturing jobs.
Japan will provide capital, while GlobalFoundries will supply the technology, manufacturing expertise and operating capability. Renesas plans to use the new capacity as an extension of its production footprint, and Tokyo Electron is identified as an equipment supplier. Apple, Cirrus Logic and GM were identified in support of domestic supply resilience.
The second fab, with an approximate $10 billion investment, has not yet been committed. GlobalFoundries will amend its $955 million CHIPS and Science Act award, reallocating funding to silicon photonics, silicon-germanium and advanced packaging. The Department of Commerce will receive an approximate 4% equity stake in GlobalFoundries.
Key facts
- Japan will finance up to $21 billion in U.S. semiconductor manufacturing capacity.
- The first GlobalFoundries fab in Malta, New York, is planned as a 300mm facility.
- GlobalFoundries expects the first fab to come online in 2029, according to the company.
- The first fab is expected to add 900,000 wafers of yearly U.S. capacity, according to the company.
- The project is expected to support 27,000 construction and ecosystem jobs and more than 1,000 high-skilled manufacturing jobs, according to the company.
- GlobalFoundries plans to reallocate its $955 million CHIPS and Science Act award.
- The Commerce Department is slated to receive an approximate 4% GlobalFoundries equity stake.
Source: GlobalFoundries news release