GlobalFoundries to add two Malta chip fabs

GlobalFoundries (GFS) has been chosen to operate two new semiconductor fabrication plants at its Malta, New York campus under a joint U.S.–Japan initiative that provides up to $21 billion in funding. The plan centers on building two 300‑millimeter wafer fabs adjacent to the company’s existing operations, significantly expanding its U.S. manufacturing footprint. The funding structure is designed in phases, with the first fab moving ahead under a committed investment and a second fab contingent on a follow‑on phase.

The program’s initial phase allocates approximately $10 billion to construct the first 300‑mm facility. A second, conditional phase of about $10 billion would bring the total potential program size to as much as $21 billion if fully executed. This phased approach ties the ultimate scale of the Malta expansion to the progression of the project and broader program milestones.

GlobalFoundries (GFS) expects to break ground on the first new fab before the end of 2026. The facility is targeted to be ready for equipment installation and to begin producing wafers in 2029, aligning construction, tooling, and ramp‑up over several years. This schedule positions the Malta campus for a substantial step‑up in 300‑mm manufacturing capability toward the end of the decade.

Each of the two planned fabs is projected to add about 900,000 300‑mm wafers of annual manufacturing capacity once fully ramped. If both plants are built and reach full production, the combined potential increase would be roughly 1.8 million 300‑mm wafers per year. This would represent a major expansion of GlobalFoundries’ output from its Malta site and support additional demand for U.S.‑based chip manufacturing.

Under the financing arrangement, a special‑purpose vehicle owned by the U.S. and Japanese governments will fund and own the infrastructure and manufacturing equipment for the two new fabs. This structure separates asset ownership from day‑to‑day operations, with public capital underwriting the costly fabrication facilities and tools.

GlobalFoundries (GFS) will be responsible for managing construction and operating the new plants. By combining government‑backed ownership of physical assets with private‑sector operational expertise, the model is intended to support advanced semiconductor production capacity while leveraging GlobalFoundries’ existing Malta campus and manufacturing experience.

In a separate but related move, the U.S. Department of Commerce has agreed to reallocate up to $955 million from GlobalFoundries’ existing CHIPS Program award. These funds are earmarked to accelerate investments in specific technology areas at the company’s U.S. sites.

The reallocated incentives will support silicon photonics, silicon‑germanium (SiGe) technologies and advanced packaging capabilities at GlobalFoundries’ facilities in Malta, New York and Burlington, Vermont. This focus complements the large‑scale capacity additions planned in Malta by targeting specialized process technologies and packaging that are increasingly important in modern semiconductor applications.