Japan considers buying GlobalFoundries US fab with tariff funds

Japan is in active negotiations to finance the construction of a semiconductor manufacturing plant on US soil, potentially channeling between ¥2 trillion and ¥3 trillion (roughly $12.8 billion to $19.3 billion) toward a facility that would be operated by GlobalFoundries. The move would represent the single largest allocation under Japan’s $550 billion investment pledge, a commitment Tokyo made as part of a bilateral trade agreement hammered out in July 2025. That trade deal lowered US tariffs on Japanese imports, particularly vehicles, to 15% in exchange for Japan promising a massive wave of investment into the American economy by January 2029. What’s on the table Discussions about the project’s structure and financial specifics reportedly took place over September 14 to 15. Neither the Japanese nor US government has officially confirmed the deal. GlobalFoundries, listed on NASDAQ under the ticker GFS, specializes in mature and specialty logic semiconductors found in cars, industrial equipment, and consumer electronics. The project would mark a notable pivot for Japan’s investment strategy under the $550 billion framework. Previous commitments, totaling around $109 billion, have be...