GlobalFoundries wins US$21 billion US-Japan deal to build, operate two New York fabs

GlobalFoundries (GFS) will operate two new 300mm semiconductor plants in New York, funded by a $21B U.S.-Japan initiative. The move expands production capacity without additional capital expenditures. GFS is trading at $48.94, 6.1% above its GF Value™ of $46.14, with a GF Score™ of 84/100. Insiders have sold $3.8M in shares over the past year.

The U.S. and Japan agreed to build two semiconductor plants in Malta, New York, with $21B investment. GLOBALFOUNDRIES Inc. will operate them, creating jobs and boosting domestic production. Apple and Renesas are initial customers. The project aims to reduce reliance on overseas semiconductors.

GlobalFoundries Inc. will build two chip-making facilities in New York, funded by Japan's $550B commitment under a U.S. trade deal. The $21B project will produce chips for cars, industrial equipment, and telecom infrastructure, supplied to Renesas Electronics Corp. Tokyo Electron Ltd. will provide manufacturing equipment. The first phase, costing $10B, begins production in 2029, according to the company.

Japan will invest $21 billion in two U.S. semiconductor plants for GlobalFoundries, part of a $550 billion investment pledge. The plants, in Malta, New York, will produce chips for autos, industrial equipment, and telecommunications. Construction begins this year, with operations starting in 2029. The U.S. government will take a 4% stake in GlobalFoundries, which saw its shares rise 4.8% on the news.

GlobalFoundries (GFS) plans to build two semiconductor plants in New York with $21B in Japanese funding. The company's stock is trading at a 6.1% premium to its intrinsic value, with a P/E ratio of 38.2x. Insiders have sold $3.8M in shares over the past year, while the GF Score™ stands at 84/100.

GlobalFoundries will operate two new semiconductor fabs in New York under a $21B U.S.-Japan initiative, adding capacity for chips used in data centers and AI infrastructure. Japan will invest $10B in the first fab, with a second $10B investment for another fab. The project, part of the CHIPS Act, aims to expand domestic chip production and create jobs, but faces execution risks and ownership questions.