GlobalFoundries to Operate Two New $20B Fabs in New York Under U.S.-Japan Deal
GFS sits 59% above its 52-week low of $32.02.
Summary
GlobalFoundries was selected on October 14, 2026 as technology provider and operator for two new semiconductor fabs at its Malta, New York site under a U.S.-Japan initiative providing up to $21 billion in funding, enabled by President Donald J. Trump's trade and investment agreement with Japan. Japan will provide the investment, with an initial $10 billion accelerating construction of a 300mm fab expected online in 2029, and an additional $10 billion for a second fab. The first fab alone adds approximately 900,000 300mm wafers of annual capacity, and the second fab would add approximately 900,000 300mm wafers of annual capacity. The project is expected to create about 27,000 construction and ecosystem jobs and more than 1,000 high-skilled manufacturing jobs. GF also agreed to amend its existing CHIPS award to reallocate $955 million toward silicon photonics, SiGe, and advanced packaging, and the reallocation will also accelerate investments at facilities in Burlington, Vermont. The U.S. Department of Commerce will receive approximately 4% equity in GF. GF expects to break ground on the first fab at its Malta site later this year, and the Malta site is permitted and shovel-ready, using existing infrastructure to speed construction. This follows a series of recent capacity and partnership announcements, including a $2 billion TSMC interposer agreement and a $375 million R&D award finalized in September. The scale of this initiative—roughly $20 billion in new fab investment—is transformative for GF's manufacturing footprint and long-term revenue potential. An investor webinar is scheduled for today at 1 p.m. EDT to discuss the announcement.
Updated with an SEC 6-K filing · What changed
Updates
· SEC 6-K — GlobalFoundries was selected on October 14, 2026 to operate two new fabs in Malta, New York under a U.S.-Japan initiative providing up to $21 billion in funding.
- Second Fab Capacity — The second fab would add approximately 900,000 300mm wafers of annual capacity.
- Jobs — The project is expected to create about 27,000 construction and ecosystem jobs and more than 1,000 high-skilled manufacturing jobs.
- CHIPS Reallocation — The reallocation of $955 million from the CHIPS award will also accelerate investments at facilities in Burlington, Vermont.
- Groundbreaking — GF expects to break ground on the first fab at its Malta site later this year. The Malta site is permitted and shovel-ready, using existing infrastructure to speed construction.
- Initiative Origin — The initiative was enabled by President Donald J. Trump's trade and investment agreement with Japan.
All 6 details
- The initiative was enabled by President Donald J. Trump's trade and investment agreement with Japan.
- The second fab would add approximately 900,000 300mm wafers of annual capacity.
- The project is expected to create about 27,000 construction and ecosystem jobs and more than 1,000 high-skilled manufacturing jobs.
- The reallocation of $955 million from the CHIPS award will also accelerate investments at facilities in Burlington, Vermont.
- GF expects to break ground on the first fab at its Malta site later this year.
- The Malta site is permitted and shovel-ready, using existing infrastructure to speed construction.
At the time of this announcement, GFS was trading at $51.00 on NASDAQ in the Technology sector, with a market capitalization of approximately $25.6B. The 52-week trading range was $32.02 to $92.55. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: GlobeNewswire.