GFS Stock in Focus as Japan, US Discuss Up to $19 Billion Chip Plant Under Tariff Investment Pact: Report

Shares of GlobalFoundries Inc. (NASDAQ:GFS) were in focus on Thursday after Japan and the United States reportedly held working-level talks this week on building a semiconductor plant in the U.S., part of Tokyo’s $550 billion investment pledge under their tariff agreement.

Deal Size Could Reach $19 Billion

The facility’s value is estimated at 2 trillion to 3 trillion yen ($12.83 billion to $19.25 billion). The project was proposed by Washington, and officials are now discussing how the investment could be recouped, among other topics, Nikkei reported on Thursday, citing officials from both governments.

According to the report, Japan’s tariff-related investments have so far centered on power projects, so the chip plant would mark an expansion into technology and manufacturing.

Under the plan, U.S. contract chipmaker GlobalFoundries is expected to operate the facility, which would produce logic semiconductors.

The White House did not immediately respond to Benzinga’s request for comment.

Talks were held Monday and Tuesday, according to Nikkei.

Reddit Inc. co-founder Alexis Ohanian in 2024 called Japan a “gateway to Asia” for chip investment, underscoring years of private and public interest in deepening the two countries’ semiconductor ties.

A Pattern of Government-Backed Bets on GFS

The proposal would mark GlobalFoundries’ latest tie to state-backed chip investment. The company finalized a $375 million Commerce Department award in September for its quantum computing unit, adding to a July letter of intent for a proposed $300 million silicon photonics award.

GFS Stock Performance

GlobalFoundries has a market capitalization of $23.61 billion. Over the past 52 weeks, its stock has reached a high of $92.55 and a low of $31.91.

GlobalFoundries reported revenue of $1.79 billion, up 6% year over year in the second quarter, beating expectations, with communications infrastructure and data center revenue surging 62%. CEO Tim Breen called AI infrastructure demand still in “early innings.”

The stock has gained 23.22% year to date.

Price Action: On Wednesday, GFS gained 0.65% to close at $43.03, according to Benzinga Pro data.

Benzinga’s Edge Stock Rankings indicate that GlobalFoundries stock has a negative price trend across all time frames.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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