GlobalFoundries Breaks Ground on $10 Billion Fab in Malta Under U.S.-Japan Deal

GlobalFoundries (GFS) broke ground Friday on a new 300mm semiconductor fab in Malta, New York, the first built under a U.S.-Japan initiative that could invest up to $21 billion at the company's campus, the company said.

The project carries an initial investment of about $10 billion and is backed by $570 million from New York State. Japan is providing the investment while GlobalFoundries contributes its technology and manufacturing expertise as operator. The fab is part of a broader multi-phase expansion in New York State.

When fully operational, the first fab is expected to add about 900,000 300mm wafers of annual U.S. manufacturing capacity, with a second fab adding roughly the same. The first fab is slated to come online in 2029. The new capacity will expand GlobalFoundries' ability to support customers worldwide with foundational semiconductors for automotive, industrial and connected infrastructure applications.

The two-fab initiative is expected to create about 27,000 construction and ecosystem jobs and more than 1,000 high-skilled manufacturing jobs in New York's Capital Region, according to the company. GlobalFoundries is working with schools, colleges, universities and workforce development organizations to build the next generation of semiconductor talent needed to support the region's continued growth.

Tim Breen, chief executive of GlobalFoundries, said the company was turning an ambitious partnership into reality and building on its long history in New York to deliver the capacity, technology and supply chain resilience its customers and both nations need for the future.

The groundbreaking follows an Oct. 14 announcement that GlobalFoundries was selected as technology provider and operator for the two fabs under the U.S.-Japan initiative. GlobalFoundries shares were down 2.7% in delayed trading.