GlobalFoundries gives the US Commerce Department about 4% in a $21 billion Japan-financed fab deal, October 14, 2026

GlobalFoundries will build and run two new chip plants in Malta, New York, financed by Japan under a US-Japan initiative worth up to $21 billion, and the US Commerce Department will receive about 4% of the company under a separate agreement, the chipmaker said on Wednesday, October 14, 2026. Commerce also moved up to $955 million of GlobalFoundries' existing CHIPS Act award into silicon photonics, silicon germanium and advanced packaging. The stock fell 3.0% in the ten minutes after the stake headline reached the MoveSurge news feed before the open, then rose 2.994% in the ten minutes after President Trump posted about the deal at 12:39:39 ET.

The deal

Japan supplies the capital for the plants, so GlobalFoundries adds two fabs' worth of capacity to run without paying to build them. In exchange for the reallocated grant money, GlobalFoundries agreed to raise its own investment at its Malta and Burlington, Vermont sites to $5 billion. Commerce did not say in its release how the new equity is paid for, and the company's chief executive, Tim Breen, told Reuters the government's total stake after the agreement would be about 7%, counting shares it already holds.

How the stock traded

Before the open GlobalFoundries was trading at $50.00. When the Commerce stake crossed at 08:31:27 ET the stock was flat after a minute, at $49.99, and $48.50 after ten minutes, down 3.0%; the one-minute candles show $48.41 after fifteen minutes, down 3.18%. A new government shareholder can mean new shares, and the release did not say whether any would be issued.

Trump's post, which described a 21 billion dollar investment for America, reached the feed at 12:39:39 ET with the stock at $47.76. It was at $48.18 after one minute, up 0.879%, and $49.19 after ten minutes, up 2.994% in the MoveSurge reaction reading; the candles show $49.10 after fifteen minutes, up 2.81%. AP reported the stock more than 4% higher in the afternoon, on a day the Nasdaq fell 1.88%. It closed Friday, October 16, at $46.68, down 4.27% on the day, as chip stocks sold off; our report on the October 16 Nasdaq decline covers that session.

The government's other company stakes

1. July 10, 2025: the Defense Department invests $400 million in MP Materials preferred stock with warrants, about 15% if fully converted and exercised.
2. August 22, 2025: the US takes 9.9% of Intel, paid for mostly with CHIPS grants Intel had not yet received.
3. October 1, 2025: the Energy Department takes 5% of Lithium Americas through warrants in a loan restructuring.
4. October 6, 2025: the US takes 10% of Trilogy Metals.
5. January 26, 2026: 10% of USA Rare Earth within a $1.6 billion package.
6. September 3, 2026: Commerce agrees to receive 9,907,399 GlobalFoundries shares at $37.85, about $375 million, as the equity part of a quantum computing CHIPS award.
7. October 14, 2026: about 4% more of GlobalFoundries with the Malta fab agreement.

A week earlier GlobalFoundries had signed a $2 billion, five-year agreement to make silicon interposers in the US for TSMC, covered in our report on that deal.