GlobalFoundries (GFS.US) Secures U.S.-Japan Support to Expand U.S. Capacity; Morgan Stanley: Asset-Light Expansion Expected to Boost Profitability

Zhitong Finance APP has learned that Morgan Stanley released a research report on October 15 stating that GlobalFoundries (GFS.US) has been selected as the technology provider and operator for two new 300mm wafer fabs at the Malta, New York campus. Japan will provide up to $21 billion in funding for the project under the U.S.-Japan trade agreement. In addition, the U.S. CHIPS Program Office will reallocate $955 million previously awarded to GlobalFoundries for R&D and capital expenditures starting in 2027, and the U.S. Department of Commerce will receive approximately 4% equity in GlobalFoundries. Morgan Stanley believes that the agreement is positive for GlobalFoundries, is expected to significantly expand its earnings potential without capital expenditure, and highlights its strategic value as the only scaled foundry in the United States.