Japan to invest up to $21 billion in two US chip factories to be run by GlobalFoundries
The deal adds a U.S. stake in GlobalFoundries and gives priority to Japanese and American customers, with Renesas Electronics and Apple among the first buyers.
- On Wednesday, Japan announced plans to invest up to $21 billion in two new chip factories in New York state, jointly owned by the US government and Japanese interests and operated by GlobalFoundries.
- This project stems from a $550 billion investment deal struck by President Donald Trump's administration last year in exchange for the US lowering tariffs on Japanese cars and other imports from at least 25 per cent to 15 per cent.
- GlobalFoundries CEO Tim Breen confirmed the company will manage operations, with initial customers including Apple and Renesas Electronics, while the US government increases its stake in the chipmaker to about 7 per cent.
- Financial returns will be split evenly between the two countries until a specific threshold is reached, after which 90 per cent of cash flows go to the US, with investment capital flowing back to Japanese toolmakers like Tokyo Electron.
- Breen emphasized the company will prioritize US and Japanese clients, stating, "We will be very open-minded, but we'll definitely engage very much with the Japanese ecosystem because they have great technologies.
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The Korea Times
Japan to invest up to $21 billion in two US chip factories to be run by GlobalFoundries
Japan will invest up to $21 billion in two chip factories in New York state that will be jointly owned by the U.S. government and Japanese interests and operated by GlobalFoundries, the company said on Wednesday. Shares of the Malta, New York-based company rose nearly 5 percent in premarket trading. As of last close, the stock had gained more than 33 percent so far this year. The move is part of a deal for Japan to invest $550 billion in the U.S…
GlobalFoundries Gets $21 Billion for Plants in US-Japan Deal
GlobalFoundries Inc. plans to build two new chip plants with the backing of as much as $21 billion from the Japanese government, part of an arrangement that also includes the US taking a 4% stake in the company.
Japan to invest up to $21 billion in two chip factories in New York state, to be jointly owned by the US government and… Japan to invest up to $21 billion in two US chip factories - ΙΝΑΦΤΕΜΟΠΟΡΙΚΙ
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