Japan to Invest Up to $21 Billion in Two US Chip Factories to Be Run by GlobalFoundries

3-line summary

• Japan will invest up to $21 billion in two chip factories in New York state, co-owned by the US and Japanese governments and built and operated by GlobalFoundries, according to Investing.com. The investment falls under the 2025 US-Japan $550 billion investment agreement, under which the US lowered tariffs on Japanese autos and other goods from 25% to 15%.
• GlobalFoundries will earn construction and operating fees plus manufacturing technology licensing revenue; the US government will separately acquire an additional 4% stake in GlobalFoundries, bringing its total stake to about 7%. Japan's Renesas Electronics and Apple were named as initial customers, with the GlobalFoundries CEO saying US and Japanese customers are prioritized.
• Investment returns are split evenly between the two countries up to a certain threshold, after which the US takes 90%; Japan has announced more than $100 billion in projects under this framework so far, with spillover investment expected for Japanese equipment makers like Tokyo Electron.

This summary is our own processing of the source article; see the source link below for full context.