GlobalFoundries, Marvell expand chip capacity deal for AI data center connectivity

Sept 17 — GlobalFoundries and Marvell Technology have expanded ​their agreement to increase production capacity for a type of semiconductor used ‌in high-speed optical connections in data centers.

Shares of GlobalFoundries ⁠rose around 4% ​in morning trading ⁠on Thursday, while Marvell was up ‌6.3%.

Here are some ‌details:

• The multi-year agreement will increase ⁠capacity for GlobalFoundries' ⁠silicon germanium (SiGe) technology, which enables faster and more energy-efficient semiconductor devices, at its facility in Burlington, Vermont.

• The rapid growth of AI data centers is driving ‌demand for SiGe technology ​used in optical networking, as higher data volumes require faster optical connections.

• "Our expanded collaboration with GF will help ensure we have the SiGe technology and manufacturing capacity to support the significant growth ​we see ahead," said Robb Johnson, ‌Vice President, ‌Foundry ⁠Technology at Marvell.

• The companies said the increased manufacturing capacity would help Marvell meet its demand for advanced optical networking ‌products such as ​pluggable optical transceivers, near-packaged ‌optics and co-packaged ⁠optics.

(Reporting ​by Jaspreet Singh in Bengaluru; Editing by Shilpi ​Majumdar)

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