GlobalFoundries will build two new chip factories at its existing site in upstate New York, according to a deal announced on October 14. Japan's government will provide up to $21 billion in funding. The US government will buy about 4% of the company's shares. The two plants will be jointly held by the US and Japan. The new factories will make basic chips, reducing reliance on suppliers in East Asia.

GlobalFoundries Inc. plans to build two new chip plants with backing of as much as $21 billion from the Japanese government. The arrangement is part of a US-Japan deal that also includes the US taking a 4% stake in the company.

GlobalFoundries shares rose nearly 6% Thursday after announcing a $2 billion manufacturing deal with Taiwan Semiconductor Manufacturing Company to produce silicon interposers at its New York facility. The five-year agreement will support expanded manufacturing capacity, with volume production expected to begin in the first half of 2028. The facility is set to become the first US-based source of silicon interposers for advanced packaging technologies. These components are crucial for TSMC's Chip-on-Wafer-on-Substrate technology, which connects AI processors with high-bandwidth memory. The deal addresses constraints in TSMC's CoWoS packaging capacity, which has become a bottleneck for AI chip production. Counterpoint Research estimates the supply-demand gap could remain around 20% in 2026 before narrowing to roughly 10% in 2027.