GlobalFoundries (GFS) Shares Surge as U.S. Takes New Equity Stake

TLDR

• GlobalFoundries shares climbed approximately 4.5% after announcing a U.S.-Japan chip manufacturing agreement.
• Japan could provide up to $21 billion to finance two semiconductor factories in Malta, New York.
• The first facility targets operations in 2029, while funding for the second factory remains unconfirmed.
• Both factories could add a combined 1.8 million wafers in annual manufacturing capacity.
• The U.S. Commerce Department will receive approximately 4% equity in GlobalFoundries under a separate agreement.

GlobalFoundries (GFS) shares rose about 4.5% Wednesday after the chipmaker said Japan could provide up to $21 billion for two factories in Malta, New York. The Nasdaq-listed company will operate the plants under a U.S.-Japan agreement.

GLOBALFOUNDRIES Inc., GFS

GlobalFoundries shares rise after factory agreement

At 7:20 p.m. London time, GFS traded at $48.805, compared with Tuesday’s $46.70 close. The delayed quote was taken during Wednesday’s U.S. session, not at closing. GlobalFoundries trades on Nasdaq.

Japan will provide the funding, while GlobalFoundries supplies technology and manages production. The first plant would receive about $10 billion and begin operating in 2029. The company plans to begin construction later this year at its Malta site.

Another $10 billion could fund a second factory, but that funding remains unconfirmed. The $21 billion is a ceiling, not money already received. Meanwhile, Intel’s foundry business faces questions over losses and funding.

New factories target 1.8 million wafers annually

The first factory should add capacity for 900,000 wafers annually when fully running. A second plant would add the same amount, bringing combined potential to 1.8 million 300mm wafers. These silicon discs form the base for chips.

GlobalFoundries expects the project to support about 27,000 construction and related jobs, plus more than 1,000 manufacturing roles. Renesas CEO Hidetoshi Shibata said his company plans to use New York capacity as an extension of its production network.

The announcement comes during a mixed week for chipmakers. Applied Materials shares fell despite AI chip demand on October 13, while other semiconductor stocks moved sharply. GlobalFoundries says its new plants will serve automotive, industrial and connected technology customers.

U.S. takes equity as grants shift

A separate agreement gives the U.S. Commerce Department equity equal to about 4% of GlobalFoundries. The company will also redirect $955 million from a CHIPS Act award toward optical chips, silicon-germanium work and advanced chip packaging in New York and Vermont.

GlobalFoundries says those projects support data centers and communications equipment. The broader semiconductor market has faced uneven trading, including Micron shares falling after a Broadcom warning on October 13. Japan, rather than GlobalFoundries, provides the capital for the new factories.

GlobalFoundries shares remain below their July 10 closing price of $68.97, despite Wednesday’s gain. They have moved above their September 15 low close of $42.75. The company reported $6.791 billion in revenue for 2025, below the project’s funding ceiling.

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