Key Highlights
- GlobalFoundries stock increased roughly 4.5% following news of a U.S.-Japan semiconductor manufacturing partnership.
- Japanese funding may reach $21 billion to support construction of two chip plants in Malta, New York.
- Operations at the initial facility are scheduled to begin in 2029, though the second plant’s financing awaits confirmation.
- The dual-facility project could generate 1.8 million wafers of annual production capacity when completed.
- Under a distinct arrangement, the U.S. Commerce Department gains roughly 4% ownership in GlobalFoundries.
GlobalFoundries (GFS) stock advanced approximately 4.5% Wednesday following the company’s announcement that Japan may contribute up to $21 billion toward constructing two manufacturing facilities in Malta, New York. The operations will proceed under a bilateral U.S.-Japan framework.
Stock price climbs on manufacturing partnership news
During Wednesday’s U.S. trading session, GFS reached $48.805 at 7:20 p.m. London time, representing a gain from Tuesday’s closing price of $46.70. The price reflects intraday trading activity on the Nasdaq exchange where GlobalFoundries maintains its listing.
Under the partnership terms, Japan supplies the financial backing while GlobalFoundries contributes technical expertise and operational management. The initial manufacturing site would receive approximately $10 billion in funding and commence production in 2029. Construction at the Malta location is expected to start within the current year.
The potential second facility would require another $10 billion, though this portion of funding has yet to receive final approval. The $21 billion figure represents a maximum allocation rather than committed capital. Separately, Intel’s foundry business faces questions over losses and funding.
Manufacturing sites designed for 1.8 million wafer output
Once operational at full capacity, the initial plant will produce 900,000 wafers per year. The planned second facility matches this capacity, creating a combined potential output of 1.8 million 300mm wafers. These circular silicon substrates serve as the foundation for semiconductor chips.
GlobalFoundries anticipates the expansion will generate approximately 27,000 construction and ancillary positions, alongside more than 1,000 permanent manufacturing jobs. Renesas CEO Hidetoshi Shibata indicated his firm intends to utilize the New York production capacity as part of its broader manufacturing infrastructure.
The disclosure arrives during a volatile period for semiconductor companies. Applied Materials shares fell despite AI chip demand on October 13, while competitor stocks experienced significant fluctuations. GlobalFoundries states the new facilities will address demand from automotive, industrial and connected device sectors.
Commerce Department acquires ownership position as grant allocation changes
A companion agreement allocates the U.S. Commerce Department an equity position representing approximately 4% of GlobalFoundries’ ownership. Additionally, the company will reallocate $955 million from its CHIPS Act grant toward photonics, silicon-germanium technologies and advanced packaging initiatives across New York and Vermont locations.
According to GlobalFoundries, these redirected investments support infrastructure for data processing centers and telecommunications hardware. The semiconductor industry overall has experienced inconsistent market behavior, including Micron shares falling after a Broadcom warning on October 13. Japan serves as the capital provider for the new manufacturing plants rather than GlobalFoundries.
GlobalFoundries stock currently trades below its July 10 closing level of $68.97, though Wednesday’s advance pushed shares above the September 15 low of $42.75. The company generated $6.791 billion in revenue for 2025, a figure substantially lower than the project’s maximum funding allocation.
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