As Japan pursues a chip-industry reboot, it's being pressed to build America's chip industry
GFS•Japan will invest up to $21 billion to build two chip factories in New York state as part of a $550 billion U.S. investment pledge made in return for lower tariffs. The article says the investment may do little to revive Japan’s chip industry or strengthen its supply-chain resilience.
1. Factories in New York
Japan will invest up to $21 billion to build two chip factories in New York state under a deal announced by GlobalFoundries. The investment is part of Japan’s pledge to invest $550 billion in the United States in return for lower tariffs, with the U.S. president selecting projects.
2. Trade and technology
Experts said the pledge may do little to revive Japan’s chip industry or improve its supply-chain resilience. White Oak Capital investment director Nori Chiou said Japan is funding U.S. semiconductor capacity without necessarily gaining much advanced chip technology or domestic manufacturing capability.
3. Financing and domestic plans
Japan’s state-backed Japan Bank for International Cooperation and commercial banks will provide loans, guaranteed by Nippon Export and Investment Insurance. Japan is also pursuing domestic investment across strategic sectors, including AI and chips, and backs Rapidus, which aims to begin mass-producing cutting-edge chips next year.
