US government to take 4% of GlobalFoundries as it builds two New York chip plants
What's the deal? The United States governmentDealroom has a profile for this one. Try Dealroom → will acquire about 4% of GlobalFoundries under an agreement disclosed on October 14. The chipmaker will build two new fabrication plants at its existing site in upstate New York, with the facilities jointly held by the US and Japan.
Who's paying? The Japanese governmentDealroom has a profile for this one. Try Dealroom → will provide up to $21 billion in funding for the project. The two plants will be co-owned by the US and Japan.
What's the endgame? The new plants will produce basic chips, the foundational components used across electronics. The stated goal is to cut reliance on East Asian suppliers.
Why now? Governments on both sides of the Pacific are racing to onshore semiconductor production after supply shocks exposed how concentrated the industry has become. A direct state equity stake and billions in foreign backing signal how far public money is now willing to go.
The signal: Washington taking an ownership position in a domestic chipmaker — rather than simply subsidising it — marks a more hands-on approach to industrial policy. Paired with Japanese capital, the deal points to allied governments treating chip manufacturing as strategic infrastructure worth owning outright.
Read more: sohu.com
Image credit: IBM Research
