MALTA, N.Y. (VINnews) — President Donald Trump announced Wednesday a planned $21 billion investment to build two semiconductor manufacturing facilities in Malta, New York, a project he said would create tens of thousands of construction and supply-chain jobs and strengthen domestic chip production.

GlobalFoundries, which operates a major semiconductor manufacturing campus in Malta, confirmed the planned expansion as part of a U.S.-Japan initiative. Japan will provide the investment capital, while GlobalFoundries will supply the technology and operate the facilities, according to the company.

Trump said the project would generate 27,000 construction and supply-chain jobs and more than 1,000 additional highly skilled manufacturing jobs.

The first facility is expected to begin operations in 2029, GlobalFoundries said. Construction is expected to begin later this year. The company said the expansion would significantly increase U.S. semiconductor manufacturing capacity, although the timeline for the second facility was not specified in the announcement.

Malta is in Saratoga County, approximately 180 miles north of New York City and about 15 miles north of Albany. The region has developed into a major center for semiconductor manufacturing and technology research.

GlobalFoundries said the new facilities are intended to meet growing demand for chips used in automobiles, industrial equipment, communications networks and other technologies. The project would further expand the company’s existing operations in Malta, where it manufactures semiconductors for a range of commercial and government applications.

Trump credited his administration’s trade agreements with Japan, South Korea and Taiwan for helping secure investment in American manufacturing. He described the project as part of a broader effort to expand domestic industrial capacity, create jobs and strengthen national and economic security.

The president also announced an additional $955 million federal investment in GlobalFoundries focused on silicon photonics, silicon-germanium technology and advanced packaging. The funding would bring the administration’s total investments in the company to $1.63 billion, Trump said.

GlobalFoundries confirmed a separate agreement with the U.S. Department of Commerce involving up to $955 million in existing incentives under the CHIPS and Science Act. The company said the funding would support investments at its facilities in Malta and Burlington, Vermont, as part of a broader $5 billion investment in those operations.

Under a separate arrangement, the Commerce Department will receive an equity stake of approximately 4% in GlobalFoundries, according to the company. Trump said the government’s stake was valued at more than $2 billion, arguing that taxpayers should benefit financially from federal support for private companies.

The planned expansion comes as the United States seeks to increase domestic semiconductor production and reduce reliance on overseas manufacturing. Semiconductors are essential components in automobiles, telecommunications equipment, computers, data centers and defense systems.

The announcement did not provide a detailed construction schedule for both facilities or specify when all the projected jobs would be created.