Howard Lutnick, U.S. Secretary of Commerce, announced on X today, October 22, 2026, a significant $21 billion funding initiative for two new semiconductor fabrication plants in upstate New York. Lutnick stated, "Great to be back in upstate New York to announce the huge $21 BILLION funding for two new semiconductor fabs thanks to President Trump’s historic trade deal with Japan. Japan is providing the funding for these high tech production facilities, and our partnership with GlobalFoundries will deliver 2 million silicon wafers from these massive new facilities in upstate New York, creating 27,000 construction and related jobs and more than 1,000 high-skilled high paying manufacturing jobs. We are bringing semiconductor chip manufacturing BACK to America, strengthening our national security, and delivering for our American workers. This is the America First Trade Agenda in action and it builds big!"
This announcement follows recent discussions around international trade, including a report that Sheinbaum says the US and Mexico are nearing a trade deal despite lingering tariff disputes. The focus on domestic semiconductor manufacturing aligns with broader efforts to secure supply chains and boost national security through industrial policy. The investment highlights a continued push to reshore critical technology production.
Lutnick's statement suggests that the funding, provided by Japan, is a direct outcome of a trade agreement under President Trump's administration. The Commerce Secretary views this as a fulfillment of the America First Trade Agenda, projecting substantial job creation and increased domestic production of silicon wafers. The initiative aims to strengthen U.S. capabilities in high-tech manufacturing.
