Japan and US discuss GlobalFoundries chip plant in tariff investment deal

Japan and the United States are negotiating a semiconductor factory in the U.S. as part of Japan’s $550 billion investment commitment tied to a tariff agreement with Washington. The project is estimated to cost ¥2 trillion to ¥3 trillion, or roughly $13 billion to $19 billion, and GlobalFoundries is being considered as the operator. The plant’s location, construction timeline and financing details have not been disclosed, and neither government has publicly confirmed the negotiations. The facility would likely produce mature and specialty chips for automobiles, consumer electronics and industrial equipment rather than the advanced processors used to train artificial-intelligence models. The proposal is among several projects under consideration, including a potential large-scale data center involving SoftBank, and analysts say its significance will depend on the eventual subsidy structure, participating companies and how much of Japan’s broader commitment is tied to specific projects.