Japan, US in talks on GlobalFoundries chip plant under US$550b investment pact

Japan and the United States are discussing the construction of a semiconductor factory as part of their US$550 billion investment agreement, Nikkei reported. The plant, valued at ¥2 trillion to ¥3 trillion, would be operated by GlobalFoundries and focus on logic semiconductors.

TOKYO: Japan and the United States are in talks to build a semiconductor factory as part of their US$550 billion investment agreement, the Nikkei business daily reported on Thursday (Sep 17).

The project is expected to be worth 2 trillion yen to 3 trillion yen (S$12.85 billion to S$19.27 billion) and would be operated by chipmaker GlobalFoundries, focusing on logic semiconductors, Nikkei reported without citing sources.

The factory would be built under the framework of the investment pact announced by the two countries' leaders earlier this year, which aims to strengthen supply chains for advanced technology.

The report did not specify a location for the proposed plant or a timeline for construction.

GlobalFoundries, which counts the US and Singapore among its manufacturing bases, has been expanding capacity to meet global demand for semiconductors used in cars, smartphones and data centres.

(US$1 = 155.6600 yen)