TOKYO - Japan has agreed with the United States on a semiconductor production project worth up to roughly $21 billion in the state of New York as the two countries seek to strengthen their economic security, trade minister Ryosei Akazawa said Thursday.
The project will be the third to be launched under a bilateral trade deal reached last year in exchange for tariff relief from the United States.
U.S. semiconductor manufacturer GlobalFoundries Inc. announced Wednesday plans to build two new chipmaking facilities in the town of Malta, upstate New York.
Japan's Ministry of Economy, Trade and Industry confirmed that GlobalFoundries is the main company involved in the latest project, adding that the first of the two facilities will cost about $10 billion.
About $10 billion will be invested in the first phase of the project, the ministry said. The first new factory is expected to begin production in 2029, according to GlobalFoundries.
"We believe Japan currently has the strongest economic relationship with the United States of any country in the world, including in terms of tariff agreements," Akazawa said.
The project aims to build a resilient semiconductor supply chain through Japan-U.S. cooperation by expanding production capacity for mature-node chips, which are essential to a wide range of sectors, including automobiles, industrial machinery, smartphones and AI data centers.
Semiconductors are a strategically important sector for economic security.
The ministry said the project is also expected to create new business opportunities for Japanese companies through the supply of related equipment and materials.
Tokyo Electron Ltd. and Screen Holdings Co. have expressed interest in supplying chipmaking equipment, while Tokyo Ohka Kogyo Co. is interested in supplying materials and components, and Renesas Electronics Corp. in purchasing the chips, the ministry said.
"The Japan-U.S. strategic investment initiative will now include a semiconductor manufacturing project, in addition to one to supply power to an artificial intelligence data center and other facilities," Akazawa said. "The projects will help both countries gain a competitive edge in the AI era."
U.S. President Donald Trump has said on social media that the latest semiconductor project would create 27,000 construction and supply chain jobs and more than 1,000 additional highly skilled manufacturing jobs in New York.
He also touted the project's national security benefits.
Trump frequently highlights major foreign investments at campaign rallies ahead of the Nov. 3 midterm elections.
Investments from Japan, South Korea and Taiwan are driving massive construction projects, boosting chip production, strengthening energy security and creating jobs, he said.
