Japan Funds GlobalFoundries US Chip Plants

ASML reports strong demand for chip equipment upgrades, with Q3 service sales at €3.3B, exceeding guidance. The company expects supply shortages to persist, driving growth in memory and logic net system sales. Intel and Micron are also investing in upgrades and expansions. ASML plans to increase production capacity and has completed pricing discussions for 2027-2028. Upgrades and expansions aim to boost output and profitability.

GlobalFoundries will produce silicon interposers for TSMC's CoWoS technology under a $2 billion, five-year deal, expanding US production capacity. The components are crucial for AI and high-performance computing chips, with volume production expected by 2028.

Japan will invest up to $21bn in two New York chip factories operated by GlobalFoundries, part of a $550bn US investment deal. The US will take a stake, but Japan will provide all capital. GlobalFoundries, majority-owned by Mubadala, will earn fees and license tech. The US will also take a 4% stake in GlobalFoundries, bringing total ownership to ~7%. Initial customers include Renesas and Apple. Japan has already committed over $100bn to US projects.

Japan plans to invest $10bn in a New York chip fab with GlobalFoundries (GFS), with a potential $21bn expansion. The fab is expected to add 900,000 300mm wafers annually by 2029, with GF projecting $50m in revenue in 2027. Japan's Ministry of Foreign Affairs confirms the initial $10bn funding, with a decision on the second fab expected by late 2028. The project involves a U.S.-Japan government vehicle owning the infrastructure and tooling.

The U.S. government has increased its stake in semiconductor manufacturer GlobalFoundries to over $2 billion, part of a broader trend of state ownership in 35 companies. Critics argue this undermines competition and innovation, while the Cato Institute's Restoring Free Enterprise project advocates for reduced government intervention in markets.

GlobalFoundries plans a $5B investment in US semiconductor facilities, supported by a $955M federal incentive. The focus is on silicon photonics, silicon-germanium, and advanced packaging for computing and data-center infrastructure. Silicon tetrachloride, used in optical-fibre production, is highlighted as a key material for telecommunications and broadband. The investment aims to strengthen domestic semiconductor manufacturing and support advanced technology supply chains.