President Trump's administration is channeling Japanese funds into a semiconductor factory in upstate New York, taking an equity stake in return. The deal involves a $10 billion Japanese investment to build a chip plant operated by Global Foundries, with the U.S. and Japan co-owning the facility through a special purpose vehicle. The factory, set to produce chips for cars and data centers by 2029, will split profits between the two governments, while Global Foundries collects technology fees.
Commerce Secretary Howard Lutnick brokered the deal using tariff concessions, part of a broader strategy to attract foreign investment. The U.S. government will also acquire a 7 percent equity stake in Global Foundries, valued at approximately $2 billion. This approach marks a shift from traditional federal grants to profit-sharing partnerships with allied nations.
Source: New York Times Business · Summarized by HeadlinesBriefing