The plan
GlobalFoundries, a U.S.-based contract chipmaker, said Japan will supply up to $21 billion under an initiative enabled by a trade and investment agreement between President Trump and Japan, while the company contributes its technology and runs the plants [1]. The first factory, with about $10 billion of initial investment, is expected to start production in 2029 with roughly 900,000 wafers a year of capacity; a second factory of similar size would follow, with no date given [1]. Groundbreaking on the first is expected later in 2026.
Government stake
Under a separate agreement, the Commerce Department will receive an equity stake of about 4% in GlobalFoundries [1]. The release did not give the share class, price or any governance rights. The company also agreed to amend its existing CHIPS Act award to redirect $955 million toward specialty chip technologies and packaging in Malta and Burlington, Vermont [1].
What remains uncertain
Terms of the Commerce stake and the Japanese funding mechanism were not disclosed in detail. Factory timelines are company projections.