Manila:US semiconductor maker GlobalFoundries Inc. plans to build two chip manufacturing plants in Malta, New York, supported by an investment of up to $21 billion from Japan, the company announced on Wednesday.
According to United News of Bangladesh, the investment was made possible by a trade and investment agreement between the Trump administration and the Japanese government. This funding is expected to enhance semiconductor production in the United States and fortify critical supply chains.
Previously, GlobalFoundries had received some federal funding under a program initiated during the Biden administration to expand domestic chip production. However, with the new Japanese investment, that federal funding will be redirected to other projects aimed at advancing semiconductor manufacturing, as stated by GlobalFoundries spokesperson Kenneth Craig in an email.
President Donald Trump mentioned on social media that the US government would acquire shares in GlobalFoundries, similar to its investment in Intel Corp. This move aligns with the administration's policy of acquiring ownership stakes in private companies.
GlobalFoundries also disclosed that about $10 billion of the investment would accelerate the construction of a chip factory scheduled to open in 2029, while the remaining $10 billion would support the development of a second plant.
The demand for semiconductors has surged in recent years, fueled by advancements in artificial intelligence and the growing need for computing power at data centers. In July, Taiwan-based chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) announced plans to invest an additional $100 billion to expand its manufacturing capacity in the United States. TSMC is also expanding its chip manufacturing facilities in the US, Japan, and Taiwan.