Japan to fund $21B deal to expand chip production in New York

Japan is helping fund a $21 billion deal to build two new chip plants in upstate New York, President Trump announced Wednesday.

The country will provide $10 billion to speed up construction of a semiconductor fabrication plant from GlobalFoundries that the company aims to bring online by 2029, while another $10 billion will go toward a second plant from the chip manufacturer.

The Trump administration is also reallocating $955 million in funding from the CHIPS and Science Act that was initially awarded to GlobalFoundries and putting it toward boosting the company’s investments in semiconductor technologies, while taking a 4 percent stake in the firm.

“We are turning the Investment commitments from Japan, Korea and Taiwan into HUGE Construction Projects,” Trump wrote in a Truth Social post . “These are TRANSFORMATIONAL AND GENERATIONAL DEALS FOR AMERICA — More Semiconductors, more Power, more Energy Security, and more Jobs for the U.S.A.”

GlobalFoundries is the latest company in which the U.S. government has taken a stake. The Trump administration has repeatedly used CHIPS and Science Act funding to invest in firms, largely with a focus on chips and critical minerals, in exchange for minority stakes.

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

Japan previously struck a trade agreement with the U.S. in July 2025, committing to invest $550 billion in key American industries, including semiconductor manufacturing, energy infrastructure and critical minerals mining.