New GlobalFoundries Fabs Will be Co-Owned by United States and Japanese Governments

“This is something that no one’s ever thought of before,” said U.S. Secretary of Commerce, Howard Lutnick, at GlobalFoundries’ celebration of Japan’s 21-billion-dollar investment into two new semiconductor fabs on Wednesday, October 21 at Luther Forest Technology Campus in Malta. 

This investment comes from the administration’s strategic trade and investment agreement in which Japan will invest a total of 550 billion dollars into American industries at President Trump’s discretion, in exchange for a lower tariff rate of 15%. 

“Japan and the United States have agreed to support this project with an initial investment of approximately 10 billion dollars, which has the potential to expand up to 21 billion dollars,” said Council General of Japan Ambassador, Satoshi Katahira. 

During the ceremony Secretary Lutnick announced the upcoming fabs will be evenly co-owned by United States and Japanese governments.

“Not only does the United States of America make money from the tariffs, but we also make money on 50% of the cash flow profits of this 20-billion-dollar investment,” said Secretary Lutnick. “On top of that, because of the scale of this investment, GlobalFoundries has agreed to give us 7% of the company, which at current market value is about 2 billion dollars.”

The publicly traded company, with its majority owner a sovereign wealth fund of the United Arab Emirates, began commercial operation of its Fab 8 in Malta in 2012. A plan for multiple fabrication facilities has been envisioned since the beginning of its investment in Malta.