Japan has committed up to $21 billion to fund the construction of two new semiconductor fabrication plants in Malta, New York, under a landmark U.S.-Japan investment initiative.
GlobalFoundries will serve as the operator of both facilities, which will be located at the company’s existing site in upstate New York, marking the first semiconductor initiative under their Strategic Investment Initiative between the two countries.
🇺🇸 As a direct result of President Trump’s U.S.-Japan trade deal, Japan will provide up to $21 BILLION to build two new semiconductor factories in upstate New York.
🏭 GlobalFoundries will operate the two factories, which will create tens of thousands of high-paying American jobs across manufacturing, construction, and the broader semiconductor industry.
Commerce is also redirecting up to $955 million in existing CHIPS funding to bring critical chip production back to America and reduce our reliance on foreign manufacturers.
This is President Trump’s trade agenda in action.
— U.S. Department of Commerce (@CommerceGov) October 14, 2026
According to Japanese government, the current estimated total project cost will be $10 billion however the project could potentially expand to $21 billion in the future “through expansion of production facilities.”
“The project aims to build a resilient semiconductor supply chain through cooperation between Japan and the United States in this strategically important area for economic security by expanding the production capacity of mature-node semiconductors, which are essential for a wide range of applications, including automobiles, industrial machinery, smartphones, and AI data centers,” read a statement from the Japanese government.
In Mesa, Arizona, I visited FUJIFILM Electronic Materials U.S.A., Inc. They supply critical process chemicals and materials for chipmakers globally. Japan plays an essential role in bolstering the American semiconductor ecosystem and driving innovation forward! -Ambassador Yamada https://t.co/XTh5RKN80C
— Japan Embassy DC🌸 (@JapanEmbDC) October 15, 2026
The project is part of the strategic investment framework announced by the two countries in September 2025. It aims to strengthen semiconductor supply chains and improve economic security through closer cooperation between the two allies.
The facility is expected to focus on mature-node semiconductors, which remain essential for a wide range of industries, including automotive manufacturing, industrial machinery, smartphones and artificial intelligence data centres. Although these chips are not necessarily the most advanced in the industry, they play a critical role in everyday technology and industrial applications.
The project is also expected to create business opportunities for Japanese companies involved in semiconductor equipment, materials and components. Tokyo Electron and SCREEN Holdings have expressed interest in supplying manufacturing equipment, while TOKYO OHKA KOGYO has indicated interest in providing materials and components. Renesas Electronics has expressed interest in purchasing the products.
Small and medium-sized businesses could also benefit from increased demand across the supply chain. Fujikin and Kusakawa Seiki have expressed interest in supplying equipment, materials and related components.
Japan said it would continue working closely with the United States to ensure the project’s smooth and timely implementation.
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