Japan to provide financial support for New York semiconductor plant
Japan’s industry minister highlights gains for AI competitiveness and economic security, with smaller supply chain businesses also expected to benefit.
- Japan will provide financial support, including investment and loans, for a new US$10 billion semiconductor factory in New York led by US chipmaker GlobalFoundries.
- The funding is part of a 2025 tariff agreement between the U.S. and Japan, under which Japan pledged investment in exchange for lower U.S. tariffs.
- Japanese companies are directly involved, with Renesas Electronics planning to buy the factory's output and others like Tokyo Electron supplying equipment and materials.
- The project aims to secure a competitive advantage in the age of AI and strengthen the economic security of both nations by boosting semiconductor manufacturing capabilities.
Japan will help finance the first of two planned New York chip factories under its tariff agreement with the United States, a project welcomed by Economy, Trade and Industry Minister Ryosei Akazawa on Thursday (October 15).
Construction is scheduled to get under way this year on the first plant, which involves an investment of about US$10 billion.
Japan will channel investment, loans and loan guarantees through government-affiliated financial institutions to support the work.
US contract chipmaker GlobalFoundries Inc. is leading the two-factory development, for which funding could reach US$21 billion.
The project was chosen for the third round of Japanese funding in the United States under the agreement.
Japan’s Renesas Electronics Corp., which intends to buy the plants’ output, is among the participants, as are two midsize companies.
Components and materials will come from Tokyo Ohka Kogyo Co., Ltd., while chipmaking equipment is expected from two companies, including Tokyo Electron Ltd., according to the Ministry of Economy, Trade and Industry.
“The benefits (of the project) are expected to also reach small and midsize companies that support the supply chain,” Akazawa said.
Speaking at a press conference, Akazawa stressed that the project “holds great significance for Japan and the United States to work together to secure a competitive advantage in the age of artificial intelligence”.
“The project will strengthen the capability to manufacture semiconductors, essential in various areas including AI data centers,” he added.
He also highlighted the benefits for economic security in both countries.
Under the agreement reached in 2025, Japan pledged to provide the United States with US$550 billion in investment and loans in exchange for lower US tariffs on Japanese imports.
[Copyright The Jiji Press, Ltd.]
