Trump Announces Major Semiconductor Investment
President Donald Trump has unveiled a significant $21 billion semiconductor expansion initiative led by GlobalFoundries in Malta, New York, backed by a trade and investment agreement between the U.S. and Japan.
On his platform, Truth Social, Trump praised this initiative as “another massive $21 billion investment for America.” He anticipates that this will lead to the establishment of two large manufacturing plants aimed at revitalizing the U.S. industrial sector and enhancing national security.
Negotiated by the Trump administration with U.S. Commerce Secretary Howard Lutnick, the deal involves Japan providing up to $21 billion for constructing two 300mm chip fabrication plants. The first plant is set to start construction later this year on a ready-to-go site, with operations expected to begin in 2029.
The second facility of similar size will follow soon after.
GlobalFoundries is expected to manage both plants and receive management and licensing fees, with support from companies like Apple, General Motors, Tokyo Electron, Cirrus Logic, and Renesas.
This project is anticipated to create around 27,000 jobs in construction and supply chains, in addition to over 1,000 high-skilled manufacturing positions in New York’s Capital Region.
The agreement underscores a broader trend toward government equity involvement in major tech manufacturing operations. Following similar recent agreements with Intel, the U.S. government will acquire an approximate 4% equity stake in GlobalFoundries, allowing taxpayers to benefit directly from corporate growth.
While traditional conservative viewpoints emphasize free-market principles and often criticize government involvement, the current GOP administration has embraced a more nationalist economic stance focused on “America First” industrial strategies.
The Department of Commerce and GlobalFoundries have adjusted aspects of the existing CHIPS and Science Act, reassigning $955 million toward cutting-edge technologies like silicon photonics, silicon-germanium, and advanced packaging at facilities in New York and Vermont. This brings total U.S. direct tech investments in GlobalFoundries to about $1.63 billion.
Tim Breen, CEO of GlobalFoundries, remarked, “This is a bold new initiative for semiconductor manufacturing, bringing together the United States and Japan with GF’s differentiated technology to enhance capacity in New York.” He added that the success of this first-of-its-kind initiative relies on a unique combination of technology, operational excellence, and execution.
Secretary of Commerce Howard Lutnick stated, “President Trump’s historic U.S.-Japan Trade Deal is delivering another massive manufacturing investment into America,” emphasizing that this partnership will yield thousands of well-paying jobs and bolster both national and economic security.
Furthermore, revenue from the Japanese-funded plants will follow a profit-sharing arrangement, equally dividing surplus cash flow between the U.S. and Japan until certain thresholds are met, after which the U.S. Treasury will receive 90% of the returns.
Trump emphasized the significance of the announcement, stating, “Under my leadership, GlobalFoundries and the Commerce Department announced a MASSIVE 21 BILLION INVESTMENT to build 2 giant new Semiconductor Manufacturing Facilities in Malta, New York.” He highlighted the job creation potential and the transformative nature of the investment for American industry.
