Under pledge to U.S., Japan’s chip investment divided between home and abroad

What happened: Japan will invest up to $21 billion to build two chip factories in New York state under a deal announced by GlobalFoundries, which is majority-owned by Abu Dhabi's Mubadala Investment. Key numbers: Up to $21 billion for two New York chip factories. Part of a $550 billion pledge to invest in the U.S. in return for lower tariffs. Why it matters: The deal shows Tokyo being pulled into helping the U.S. build up its own semiconductor industry even as Japan pushes to revive its chip sector. Under the agreement, the U.S. president, not Japan, selects the projects.

Japan will invest up to $21 billion to build two chip factories in New York state under a deal announced by GlobalFoundries, which is majority-owned by Abu Dhabi's Mubadala Investment.

The deal shows Tokyo being pulled into helping the U.S. build up its own semiconductor industry even as Japan pushes to revive its chip sector. Under the agreement, the U.S. president, not Japan, selects the projects.