Story perspectives

Japan Plans $21B Chip Factories, Boosting U.S. Capacity 10%

By Drooid · Oct 15, 2026, 6:22 AM UTC · How we work

Summary

Story summary

Japan will invest about $21 billion to build two chip factories in New York State.
U.S. President Donald Trump said the U.S. government will take a 7% minority stake in GlobalFoundries.
Production of 900,000 300 mm wafers annually begins in 2026, boosting U.S. capacity about 10%.
The projects will create over 1,000 high-skilled manufacturing jobs in New York.
GlobalFoundries will redirect $955 million in CHIPS Act subsidies to silicon photonics and advanced packaging.

History

Historical Context

Japan’s share rose from 28% in 1978 to about 50% by 1987, while U.S. share fell to 44%, leading to the 1986 U.S.–Japan Semiconductor Agreement. The United States responded by creating SEMATECH in 1987, an effort that encouraged major U.S. firms to plan new fabs; the allies now cooperate to rebuild U.S. wafer capacity and cut reliance on East Asian exporters.

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Story summary

Japan will invest about $21 billion to build two chip factories in New York State.
U.S. President Donald Trump said the U.S. government will take a 7% minority stake in GlobalFoundries.
Production of 900,000 300 mm wafers annually begins in 2026, boosting U.S. capacity about 10%.
The projects will create over 1,000 high-skilled manufacturing jobs in New York.
GlobalFoundries will redirect $955 million in CHIPS Act subsidies to silicon photonics and advanced packaging.

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