"Massive $21 bn investment for America": Trump announces Japan-backed chip fabs

In a post on Truth Social, Trump said, "Another massive 21 billion dollar investment for America!"

"Today, under my leadership, GlobalFoundries and my Department of Commerce, led by Secretary Howard Lutnick, announced a massive 21 billion investment to build 2 giant new Semiconductor Manufacturing Facilities in Malta, New York," he said.

Trump said the project would create 27,000 high-paying construction and supply-chain jobs and more than 1,000 additional highly skilled manufacturing jobs in New York.

"Under my direction, Japan will provide the capital for the 21 Billion Dollar Investment. This deal is a result of my historic trade deals to revitalise the American Industrial Base, create hundreds of thousands of great American jobs, and strengthen our National and Economic Security," he said.

"We are turning the Investment commitments from Japan, Korea and Taiwan into huge Construction Projects. These are transformational and generational deals for America More Semiconductors, more Power, more Energy Security, and more Jobs for the USA," Trump added.

He also announced an agreement with GlobalFoundries involving additional US government investment in advanced semiconductor technologies and an equity stake in the company.

"My Commerce Department will invest 955 Million Dollars in Silicon Photonics, Silicon Germanium, and Advanced Packaging. This brings our total Investments to 1.63 Billion Dollars, and now, the US Governments stake is worth over 2 Billion Dollars," Trump said.

According to a press release issued by GlobalFoundries on Wednesday (local time), the company has been selected as the technology provider and operator for the two new semiconductor fabrication facilities under a US-Japan initiative enabled by Trump's trade and investment agreement with Japan. The initiative aims to expand semiconductor manufacturing in the United States, strengthen critical supply chains and meet growing demand across automotive, industrial and connected infrastructure markets.

Japan will provide the investment, while GlobalFoundries will contribute its technology, manufacturing expertise and operational capabilities.

An initial investment of approximately USD 10 billion will accelerate construction of the first 300mm semiconductor fabrication plant, which is expected to begin operations in 2029. A further investment of approximately USD 10 billion would fund the second facility.

GlobalFoundries CEO Tim Breen said, "This is a bold new initiative for semiconductor manufacturing, bringing together the United States and Japan with GFs differentiated technology and decades of manufacturing expertise to accelerate trusted capacity in New York."

According to the press release, US Commerce Secretary Howard Lutnick said, "President Trump's historic US-Japan Trade Deal is delivering another massive manufacturing investment into America."

He added that Japan's investment and GlobalFoundries' partnership would support the construction of two large semiconductor facilities and create thousands of high-paying jobs for American workers.

The first facility is expected to add approximately 9,00,000 300mm wafers of annual US manufacturing capacity when fully operational, with the second expected to add a similar amount.

Separately, GlobalFoundries said it had agreed to amend its existing award under the CHIPS and Science Act, reallocating USD 955 million to accelerate investments in silicon photonics, silicon-germanium (SiGe) and advanced packaging at its facilities in Malta, New York, and Burlington, Vermont. The company also confirmed that the US Department of Commerce would receive an equity stake of approximately four per cent, allowing the American public to share in its growth.

The announcement comes ahead of the November midterm elections, as the Trump administration highlights international trade agreements, investment commitments and domestic manufacturing as key elements of its economic agenda. (ANI)