Up to twenty-one billion dollars in Japanese government money will fund two new chip factories in upstate New York, and the company that runs them will not own them. GlobalFoundries was selected last week as the operator for two new semiconductor fabrication plants at its Malta campus, funded entirely through a separate company the American and Japanese governments own. Japan provides the capital — roughly $10 billion for a first fab expected online in 2029, roughly $10 billion more for a second. Separately, the Commerce Department takes an additional four percent equity stake. CEO Tim Breen told Reuters the government's total holding rises to about seven percent.
The arrangement makes sense only when each party's incentive is visible. Japan pledged $550 billion in American investment under a 2025 trade agreement, with a January 2029 deadline and a requirement that the money go to strategic sectors. Returns split equally between Washington and Tokyo up to a ceiling, then the American share jumps to ninety percent. GlobalFoundries projects it will take in roughly $3 billion more than it spends over the next decade from technology, construction and operating fees, starting in 2027 and running at least twenty years, without owning the factories or putting up capital. Mubadala Investment Company holds 73% of GlobalFoundries. It sold 22 million shares in a block trade five months ago, raising roughly $1.9 billion.
The stock tells a different story. GlobalFoundries shares rose 4.8% the day the deal was announced, then fell 0.4% the next day. The project remains subject to definitive agreements — none yet finalized — and the company's financial projections apply to the first fab only. Q1 2026 net income fell to $104 million from $211 million a year earlier, even as revenue rose 3.1 percent. The projected $3 billion is a decade-long estimate for factories that have not broken ground, attached to a deal that has not closed.
The government now holds equity in thirty-five companies. On Truth Social, Trump said the government had provided $1.63 billion in grants to GlobalFoundries and the stake is now "worth over 2 Billion Dollars." He added: "We are the first administration ever to turn grants into money for America." The capital comes from Japan, the factories belong to a government vehicle, and the company running them is 73% owned by Abu Dhabi.
The capital comes from Japan, the factories belong to a government vehicle, and the company running them is 73% owned by Abu Dhabi.
