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Chipmaker GlobalFoundries will build two plants in the US for $21 billion

Japan will provide the funding, and under a separate agreement, the U.S. government will acquire a 4% stake in the company, GlobalFoundries said.

Componentes electrónicos en una placa de circuito

Electronic components on a circuit boardAFP.

AFP
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The semiconductor company GlobalFoundries announced on Wednesday the construction of two microprocessor manufacturing plants in New York, with an investment of $21 billion from a U.S.-Japan initiative.

Japan will provide the funding, and under a separate agreement, the U.S. government will acquire a 4% stake in the company, GlobalFoundries said.

Donald Trump praised the agreement in a social media post on Wednesday.

"An initial investment of approximately $10 billion will accelerate the construction of a new semiconductor factory, which is expected to begin operations in 2029," the company said in a statement.

It added that another investment of about $10 billion would be for a second plant.

GlobalFoundries noted that the joint initiative between the two countries was made possible by the prior trade and investment agreement between Washington and Tokyo.

The goal is to boost semiconductor production in the United States, as processors are in high demand across various sectors.

The Department of Commerce added in a separate statement that it would reallocate up to $955 million in incentives under the CHIPS and Science Act for the modernization and expansion of GlobalFoundries' factories.

Around 1:20 p.m. (EDT), GlobalFoundries shares were up 4.8% on the New York Stock Exchange.

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