Japan, U.S. Discuss $19 Billion GlobalFoundries Chip Plant

Japan and the United States are discussing plans to build a major semiconductor factory under their $550 billion investment agreement, with GlobalFoundries Inc. potentially operating the facility, according to a report from the Nikkei on Thursday.

The proposed semiconductor plant is expected to require an investment of between 2 trillion yen and 3 trillion yen, equivalent to roughly $12.9 billion to $19.3 billion. Nikkei cited unidentified officials from both Japan and the U.S. familiar with the discussions.

GlobalFoundries, a major U.S.-based semiconductor manufacturer listed on Nasdaq under the ticker GFS, would reportedly operate the factory. The potential project highlights growing efforts by Washington and Tokyo to strengthen semiconductor supply chains and expand domestic chip manufacturing capacity.

Japan agreed last year to invest $550 billion in the United States as part of a broader economic agreement between the two countries. The investment commitment was tied to a deal aimed at reducing tariffs on Japanese exports and expanding bilateral economic cooperation.

Semiconductors have become an increasingly important area of U.S.-Japan cooperation as both countries seek to secure supplies of critical technologies and reduce vulnerabilities in global chip production. A multibillion-dollar GlobalFoundries facility would represent one of the largest projects being considered under the investment framework.

The two governments are also discussing several other large-scale projects that could form part of the $550 billion investment package. Among them is a major data center development involving Japan's SoftBank Group, according to the report.

The discussions underscore the growing focus on semiconductor manufacturing, artificial intelligence infrastructure and data centers as strategic areas for investment between Japan and the United States.

If finalized, the GlobalFoundries project could significantly expand U.S. semiconductor production while giving Japanese investment a prominent role in strengthening America's technology supply chain. However, details including the factory's location, construction schedule and final investment structure have not yet been disclosed.