GlobalFoundries Japan-Backed Expansion Adds Capital-Light Earnings Stream and Solidifies U.S. Footprint; Bulk of Uplift a Long-Term Story

Earlier today, GlobalFoundries (GFS) announced that it has been selected as the technology provider and operator for two new 300mm fabs at its Malta, NY campus. The fabs are backed by up to $21B of Japanese investment under the U.S.-Japan Trade Agreement. Per management, an SPV owned by the U.S. and Japanese governments will fund and own the fab infrastructure and tooling and cover operating expenses. GFS will contribute its FDX, BCD, and UX technologies and manage construction and operations in exchange for technology and management fees, a share of SPV EBITDA, and certain cost reimbursements. Phase 1 has key permits and infrastructure in place, with first wafers targeted for 2029, and ~900K wafers annually (300mm-equivalent) of eventual capacity. A similarly sized Phase 2 depends on a go/no-go decision before year-end 2028, and management expects the two fabs together to add ~10% to U.S. wafer capacity. For the first fab only, management expects ~$50M of revenue and $0.10-$0.15 of EP