Tokyo Electron will secure around US$1 billion in equipment orders for GlobalFoundries’ first new chip factory in New York by the end of 2028.

The factory is expected to begin production in 2029. On 14 October, GlobalFoundries announced that Japan would provide up to US$21 billion for two new factories in Malta, New York, as part of its US$550 billion investment pledge to secure lower US tariffs. The arrangement favours Japanese suppliers, as Japan’s state lender can only finance projects that benefit Japanese companies. Tokyo Electron is well placed to win orders because it already supplies GlobalFoundries, whose chief executive has expressed strong interest in Japanese equipment. US$1 in orders would equal roughly 6% of Tokyo Electron’s ¥2.44 trillion in annual sales. US rivals Applied Materials and Lam Research will capture less of the factory’s equipment budget than their combined 29% global market share would suggest.