# GlobalFoundries (GFS): Japan to fund up to $21B for two new New York chip fabs it will run > GlobalFoundries, a US-based maker of chips for other companies, has been chosen to run two new factories in Malta, New York, paid for by Japan under… - URL: https://centiview.com/post/globalfoundries-gfs-japan-to-fund-up-to-21b-for-two-new-york-chip-fabs - Published: 2026-10-14T19:30:00.000Z - Sectors: Semiconductors, Technology & AI - Region: US - Ticker: GFS - Sentiment (opinion, not a recommendation): bullish - Publisher: Centiview (Persie Ltd, London) - General information only, not financial advice GlobalFoundries, a US-based maker of chips for other companies, has been chosen to run two new factories in Malta, New York, paid for by Japan under a US-Japan trade agreement. The package provides up to $21B, though only about $10B for the first factory is firm, and the US government will take a stake of about 4% in the company. Shares rose roughly 4% to 5% in morning trading. ## What happened On 14 October 2026 GlobalFoundries (GF) announced that it had been selected as the technology provider and operator for two new factories, known as fabs, at its Malta, New York site. A fab is a plant that turns silicon wafers, the thin discs that chips are cut from, into finished chips. The money comes from Japan under the US-Japan trade and investment agreement: the company says the initiative provides "up to $21 billion", with Japan supplying the investment while GF supplies its technology, manufacturing know-how and day-to-day operation. About $10 billion is earmarked to speed up construction of the first fab, which is expected to be running in 2029. Roughly another $10 billion "would" fund a second fab, so that part is conditional. Two further changes involve the US government. First, the Department of Commerce and GF agreed to redirect $955 million of GF's existing award under the CHIPS and Science Act, the 2022 law that subsidises US chip production, towards silicon photonics (chips that move data using light), silicon-germanium chips (used in radio and high-speed communications) and advanced packaging, at Malta and at Burlington, Vermont. That is existing money pointed at new uses, not a fresh grant. Second, in a separate agreement the Commerce Department will receive equity of about 4% in GF. GF says it expects to break ground on the first fab later in 2026, on a site that is already permitted. All of this is from the company's release; the final terms may change. ## The numbers, explained Each fab is expected to add about 900,000 300mm wafers a year of US capacity once fully built (300mm is the standard wafer width, about 12 inches). Our working: two fabs at about 900,000 each gives roughly 1.8 million wafers a year, if both go ahead. GF also expects about 27,000 construction and ecosystem jobs and more than 1,000 high-skilled manufacturing jobs in New York's Capital Region. These are company projections. On the market reaction, StockTitan showed the shares at $48.59, up 4.05% in delayed intraday data, and The National reported them up 4.9% at $48.99 at 10am New York time. Because the quotes were taken at different moments, we describe the move as roughly 4% to 5% rather than a single figure. To judge what the deal means, compare it with GF's most recent results, for the quarter to 30 June 2026, from its filing with the SEC. Sales were $1,786M, against $1,688M a year earlier: $98M more, or 5.8%, and 9.3% above the $1,634M of the first quarter. The share of each sales dollar left after the direct costs of making chips (gross margin, on the adjusted non-IFRS basis) was 29.9%, up from 25.2%, a rise of 4.7 percentage points. Reported (IFRS) net income, the profit after all costs and tax, fell from $228M to $167M, down 26.8%, while adjusted net income rose from $234M to $256M, up 9.4%. Spending on equipment and buildings (capex) was $411M against $159M, up 158.5%, and operating cash flow was $405M against $431M, down 6.0%. In other words, GF is spending more than it brings in from operations, and held $3.3B of cash and securities at 30 June. The company's own forecast for the next quarter is sales of $1,885M, plus or minus $25M, which is 5.5% above the second quarter. ## Why it matters GF makes chips designed by other companies, a business called a foundry. It earns money by charging customers for each wafer it produces, so its sales depend on how full its factories are and on how much customers pay per wafer. It does not compete at the very smallest, most advanced chip sizes; it specialises in chips for cars, phones, communications and industrial equipment. Building a fab costs billions of dollars, and GF's capex has already been rising. Here, Japan's money pays for construction, which could let GF add capacity without funding the whole build itself. The release does not say who will own the fabs or how returns are shared, and the sources we read do not either, so we draw no conclusion on that. For customers, the release quotes support from Apple, which calls GF a source of essential chips made in the US, from Renesas, which says it is planning around the New York capacity, from Cirrus Logic and from GM, which describes the first direct automaker-to-foundry supply agreement. For the sector, it is another sign that governments are now co-investing in chip plants, through grants, trade deals and, here, equity stakes. For GF, a government shareholder and a foreign funder bring both money and dependence on policy: the company's own risk warning names trade tensions, tariffs and delayed or withheld government funding. The National also reports that GF is majority owned by Abu Dhabi's Mubadala, a detail we did not confirm in a filing. ## What to watch next GF held an investor webcast at 1 p.m. New York time on 14 October, with a replay on investors.gf.com. The company says it expects to break ground on the first fab later in 2026 and will announce groundbreaking details separately. The first fab is expected online in 2029, and the second fab depends on the additional roughly $10 billion being provided. GF's next quarterly results will show how capex and cash flow move; we have not found a confirmed date, so check the company's investor relations page. Its own forecast for the quarter is sales of about $1,885M and adjusted profit per share of about $0.51, give or take $0.05. - Key terms in plain words - Foundry: a company that makes chips designed by other companies. - Fab: a factory that turns silicon wafers into finished chips. - CHIPS Act award: US government support for chip production, here partly redirected. - Gross margin: the share of sales left after the direct costs of making the product. > **Why it matters** A US chipmaker will get its next two factories paid for by Japan, with the US government taking a small ownership stake. It shows how chip building is now shaped by trade deals and governments, not only by companies. > **What we verified** From GF's 14 Oct 2026 release (read via StockTitan and GF's site): up to $21B, about $10B for fab one (2029), second fab conditional, 900,000 wafers a year per fab, 27,000 jobs, $955M CHIPS reallocation, about 4% US equity. CBS6 and The National confirm the same deal terms; share moves are from StockTitan and The National. Q2 figures are from GF's SEC 6-K; percentages were recomputed by us. Mubadala ownership is from The National only. A reported 7% total government stake is not confirmed in the release, so we left it out. ### Sources - [GlobalFoundries release: Selected to operate two new semiconductor fabs in New York (via StockTitan)](https://www.stocktitan.net/news/GFS/global-foundries-selected-to-operate-two-new-semiconductor-fabs-in-9vtglnyxspcq.html) - [GlobalFoundries Form 6-K: Second quarter 2026 financial results (SEC)](https://www.sec.gov/Archives/edgar/data/0001709048/000170904826000218/globalfoundries2q2026earni.htm) - [UAE-backed GlobalFoundries to run two chip plants under $21bn US-Japan deal (The National)](https://www.thenationalnews.com/future/technology/2026/10/14/globlafoundries-japan-us-chips/) - [GlobalFoundries picked for two new Malta chip fabs (CBS6 Albany)](https://cbs6albany.com/news/local/globalfoundries-picked-for-two-new-malta-chip-fabs-in-21b-us-japan-investment-push-president-trump-malta-commerce-howard-lutnick-new-york-state-support-governor-kathy-hochul-mark-reuss-green-us-department-of-commerce-cbs6-wrgb)