# GlobalFoundries Selected to Operate Two New New York Fabs Under $21B Plan

- URL: https://stocks.freetheai.org/news/globalfoundries-selected-to-operate-two-new-new-york-fabs-under-21b-plan-5c7def
- Published: 2026-10-14T12:30:00Z
- Category: company_news; sentiment: mixed; impact: high
- Symbols: [NASDAQ:GFS](https://stocks.freetheai.org/symbols/NASDAQ-GFS)
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GlobalFoundries Inc. (GFS) has been selected to serve as technology provider and operator for two new chip fabrication plants in Malta, New York. The project is part of a joint U.S.-Japan initiative offering up to $21 billion in financial backing. Construction of the initial facility is estimated at $10 billion with startup targeted for 2029, while a second $10 billion facility is planned for future expansion.

When fully operational, each plant is scheduled to add roughly 900,000 300mm wafers per year to U.S. chip production. In tandem with the expansion, $955 million in CHIPS Act funding is being redirected to accelerate work on silicon photonics, silicon-germanium, and advanced packaging to meet growing demand in data centers and communications. Under the agreement, the U.S. Department of Commerce will receive approximately a 4% equity stake in the company. GlobalFoundries shares traded down 3.39% at $46.70 following the announcement.

Key areas to track include finalized funding agreements, construction progress, and early customer commitments. Investors will also monitor whether the first plant remains on track for its 2029 launch date to translate this capacity expansion into steady revenue growth.

## Key points

- GlobalFoundries will operate two new $10 billion chip plants in Malta, New York, under a U.S.-Japan funding plan of up to $21 billion.
- The first manufacturing plant aims to begin production in 2029, with each facility designed to output about 900,000 300mm wafers annually.
- The U.S. Department of Commerce will acquire roughly a 4% equity stake in GlobalFoundries under the initiative.
- A total of $955 million in CHIPS Act funds will be reallocated to advance packaging, silicon photonics, and silicon-germanium tech.

## Questions and answers

### What is GlobalFoundries building in Malta, New York?

GlobalFoundries is serving as technology provider and operator for two new semiconductor plants in Malta, New York, under a U.S.-Japan program with up to $21 billion in total backing. Each plant will produce about 900,000 300mm wafers annually.

### When will the new GlobalFoundries plant start production?

The first $10 billion plant is scheduled for startup in 2029. A second planned $10 billion facility would further expand output if fully executed.

### Why is the U.S. Department of Commerce taking equity in GlobalFoundries?

Under the agreement for the U.S.-Japan semiconductor initiative, the U.S. Department of Commerce will receive approximately a 4% equity position in GlobalFoundries.