On October 14, news emerged that GlobalFoundries is set to construct two new chip factories, backed by up to $21 billion in financial assistance from the Japanese government. Under the terms of the agreement, the U.S. government will secure approximately a 4% equity stake in GlobalFoundries. According to the announcement made on Wednesday, the two factories, jointly owned by the U.S. and Japan, will be situated at GlobalFoundries' current location in northern New York State. The construction funds will be drawn from Japan's previously committed $550 billion investment in the United States. The new factories will primarily manufacture 'basic chips,' which are extensively utilized in automobiles, industrial machinery, and communication devices. Although these chips possess relatively lower technological sophistication, their significance is paramount. With the widespread integration of electronic components across diverse products, the demand for these chips is on a steady rise, compelling chip manufacturers to vigorously expand their production capacities. Concurrently, the AI craze has intensified the chip supply shortage, as the semiconductor industry is allocating more resources towards advanced chips, such as Nvidia's AI accelerators. GlobalFoundries' initiative is aimed at bolstering the U.S. production of basic chips and diminishing dependence on East Asian suppliers, thereby addressing national security apprehensions.