Portugal selects Lufthansa for TAP privatization
The government said the first phase would bring in €1.201 billion, while Portugal would retain a 50.1% majority stake in the airline.
Japan to provide up to $21 billion for GlobalFoundries-operated US plants
The two New York chip factories will have US government and Japanese ownership, with Japan supplying all the investment capital.
GlobalFoundries said on October 14 that Japan will supply up to $21 billion to build two semiconductor factories in New York state. The US government and Japanese interests will jointly own the facilities, while GlobalFoundries will operate them.
Japan will contribute all the capital even though the US will hold an ownership stake, the company said. GlobalFoundries will receive fees for construction, operations and the licensing of its chipmaking technology.
A separate agreement will give the US government a 4% stake in GlobalFoundries itself, taking its overall holding to about 7%, CEO Tim Breen said in an interview. Abu Dhabi sovereign wealth fund Mubadala Investment Co owns a majority of the chipmaker.
Breen said GlobalFoundries would handle relationships with customers. Apple and Japan's Renesas Electronics are among the factories' initial customers. He said the company wanted to prioritize US and Japanese customers, although he expected demand from companies elsewhere as well.
The factories fall under Japan's $550 billion US investment agreement with President Donald Trump's administration. In exchange, the US agreed to cut tariffs on Japanese cars and other imports to 15% from at least 25%. Japan has announced two groups of projects totaling more than $100 billion under that arrangement.
Trump chooses the projects Japan funds. Available free cash flows will initially be divided equally between the countries until a specified allocation is reached; the US will then receive 90%. Breen said some Japanese capital would return to Japanese chip-equipment suppliers, including Tokyo Electron.