THE CRUNCH
GlobalFoundries has broken ground on the first new semiconductor fab planned for its Malta, New York site under a US-Japan initiative, marking the start of construction on a new 300 mm fab. The project follows the company's 14 October selection as technology provider and operator for two fabs at the site under an initiative providing up to $21 billion in funding.
The funding model is unusual: Japan provides the investment, while GlobalFoundries contributes its manufacturing technology and operations, in what the company describes as a first-of-its-kind arrangement to expand trusted US chip capacity. Demand is expected to come from automotive, industrial and connected infrastructure markets.
An initial investment of roughly $10 billion, backed by $570 million in incentives from New York State, is accelerating the first fab, which is expected to come online in 2029. A further investment of approximately $10 billion will support a second fab as the project advances.