{"id":71889,"date":"2026-09-17T02:48:53","date_gmt":"2026-09-17T06:48:53","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-and-japan-target-19-billion-chip-factory-amid-global-tech-realignment\/71889\/"},"modified":"2026-09-17T02:48:53","modified_gmt":"2026-09-17T06:48:53","slug":"us-and-japan-target-19-billion-chip-factory-amid-global-tech-realignment","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-and-japan-target-19-billion-chip-factory-amid-global-tech-realignment\/71889\/","title":{"rendered":"US and Japan Target $19 Billion Chip Factory Amid Global Tech Realignment"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Japan and the US are negotiating a 2-3 trillion yen ($12.8B &#8211; $19.3B) semiconductor factory<\/strong> to be operated by GlobalFoundries (<a href=\"\/stock\/GFS\">GFS<\/a>) as part of a $550 billion investment framework.<\/li>\n<li><strong>Morgan Stanley has adopted a hawkish Fed outlook<\/strong>, forecasting a 25 bps rate hike in December 2026 followed by another in March 2027 due to persistent inflationary pressures.<\/li>\n<li><strong>Chinese tech titans, including BYD (<a href=\"\/stock\/BYDDF\">BYDDF<\/a>) and Xiaomi (<a href=\"\/stock\/XIACF\">XIACF<\/a>)<\/strong>, are expected to join President Xi Jinping on his upcoming US visit, signaling potential investment deals despite ongoing trade tensions.<\/li>\n<li><strong>The European Union is strengthening ties with Canada<\/strong>, proposing &quot;associate membership&quot; status to counter geopolitical volatility and US trade pressures.<\/li>\n<li><strong>Ferrari (<a href=\"\/stock\/RACE\">RACE<\/a>) and Rakuten (<a href=\"\/stock\/RKUNY\">RKUNY<\/a>) have signed a multi-year partnership<\/strong> effective January 2027, focusing on telecommunications and e-commerce innovation.<\/li>\n<\/ul>\n<h2>US-Japan Semiconductor Alliance Intensifies<\/h2>\n<p>Japan and the United States are in advanced discussions to construct a major semiconductor facility, according to reports from the <em>Nikkei<\/em>. The project, estimated to cost between <strong>2 trillion and 3 trillion yen ($12.85 billion to $19.27 billion)<\/strong>, is expected to be operated by GlobalFoundries (<a href=\"\/stock\/GFS\">GFS<\/a>) and will focus on logic semiconductors. This initiative falls under a broader <strong>$550 billion bilateral investment framework<\/strong> aimed at securing high-tech supply chains and potentially exempting Japanese chips from proposed US import tariffs.<\/p>\n<h2>Morgan Stanley Forecasts Extended Fed Tightening<\/h2>\n<p>In a significant shift in market expectations, Morgan Stanley now predicts the U.S. Federal Reserve will deliver a <strong>25 basis point rate hike in December 2026<\/strong>, with an additional hike following in <strong>March 2027<\/strong>. Analysts cite a &quot;slower and less convincing&quot; disinflation process and second-round effects from elevated energy prices as primary drivers for the hawkish revision. This outlook contrasts with previous expectations of a policy pause, suggesting that interest rates may remain &quot;higher for longer&quot; to maintain Fed credibility.<\/p>\n<h2>High-Stakes Diplomacy: Xi&#39;s US Visit and EU-Canada Ties<\/h2>\n<p>President Xi Jinping\u2019s upcoming visit to the US is set to include a high-profile business delegation featuring executives from <strong>BYD (<a href=\"\/stock\/BYDDF\">BYDDF<\/a>)<\/strong>, <strong>Xiaomi (<a href=\"\/stock\/XIACF\">XIACF<\/a>)<\/strong>, and <strong>Innolight<\/strong>. The inclusion of BYD founder Wang Chuanfu is viewed as a strategic move given the current <strong>100% US tariffs on Chinese electric vehicles<\/strong>. Simultaneously, France\u2019s Europe Minister Benjamin Haddad emphasized that the US does not determine the EU&#39;s geopolitical direction, defending the bloc\u2019s move to deepen ties with Canada through a proposed &quot;associate membership&quot; status.<\/p>\n<h2>Corporate and Economic Briefs<\/h2>\n<ul>\n<li><strong>Swiss Trade Data:<\/strong> Switzerland\u2019s real exports fell <strong>8.6% in August<\/strong>, a sharp reversal from the previous month&#39;s growth. However, <strong>Swiss watch exports<\/strong> maintained a year-on-year growth of <strong>9.1%<\/strong>, though slightly down from July&#39;s 9.6% pace.<\/li>\n<li><strong>Ferrari-Rakuten Partnership:<\/strong> Ferrari (<a href=\"\/stock\/RACE\">RACE<\/a>) has secured a global partnership with Rakuten (<a href=\"\/stock\/RKUNY\">RKUNY<\/a>) starting in 2027. The deal will integrate Rakuten\u2019s digital ecosystem into Ferrari\u2019s racing and commercial operations.<\/li>\n<li><strong>Aviation Expansion:<\/strong> Etihad Airways signed a cooperation agreement with Uzbekistan\u2019s Tourism Committee to boost trade and tourism. This follows the launch of daily non-stop service between <strong>Abu Dhabi and Tashkent<\/strong> in August 2026.<\/li>\n<li><strong>Geopolitical Risks:<\/strong> Concerns are rising over food supply stability in Asia due to the ongoing Iran conflict and El Ni\u00f1o patterns. In Iran, the continued public absence of Supreme Leader <strong>Mojtaba Khamenei<\/strong> has fueled internal suspicion and &quot;bafflement&quot; regarding the regime&#39;s stability.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Japan and the US are negotiating a 2-3 trillion yen ($12.8B &#8211; $19.3B) semiconductor factory to be operated 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