Trump administration doubles its equity stake in GlobalFoundries, will partner with company in new semiconductor plant

President Trump and chipmaker GlobalFoundries ( GFS ) announced a multifaceted series of deals Wednesday, doubling what was already a sizable US government stake in the company, as well as plans for two new semiconductor fabrication plants to be operated by the company and the US and Japanese governments.

GlobalFoundries' market capitalization, according to Yahoo Finance data , is about $27.2 billion. Trump said Wednesday the US government's stake is now "worth over 2 Billion Dollars."

The deal also includes the formation of a new "Special Purpose Vehicle" co-owned by the US and Japanese governments. The new entity will fund construction of the two fabrication plants and then own the underlying infrastructure, according to a presentation from GlobalFoundries to its investors.

GlobalFoundries will receive payments for its technological know-how and for operating the facility, with the company describing itself as the "the technology provider and operator" of the plants.

The announcements on Wednesday were the latest twist in the US government's aggressive move into equity stakes in private companies, which now spans 35 companies.

The overlapping GlobalFoundries deals also include reallocating a previous $955 million US government award made under the 2022 Chips and Science Act toward modernizing the company's facilities.

Trump, in his social media post , directly linked the $955 million to an increased equity stake, saying that money "brings our total Investments to 1.63 Billion Dollars, and now, the U.S. Government's stake is worth over 2 Billion Dollars."

GlobalFoundries described the two as separate agreements but confirmed that the US government is taking an additional stake of approximately 4% of the company.

The company hasn't released full details of the previous deals, but a company official confirmed to Yahoo Finance that those prior equity stakes totaled between 3% and 4%, resulting in a current government stake approaching 8%.

The math in Trump's post about a more than $2 billion stake in a $27.2 billion company implies an equity stake of at least 7.35%.

A continued role for the US and Japanese governments

GlobalFoundries also announced plans to help build two semiconductor fabrication plants, which Trump described as a $21 billion investment paid for by Japan.

Japan's Ministry of Economy, Trade and Industry confirmed some of the details of the deal in a press release Thursday and added that the plant would provide Japanese companies with increased business opportunities including in supplying manufacturing equipment.