GlobalFoundries to make key AI chip component for TSMC in $2 billion deal

Oct 8 — GlobalFoundries on Thursday said it has ​reached a $2 billion agreement to make a key component used to link ‌AI processors and memory chips for TSMC at its ⁠New York facility.

Known ​as a silicon interposer, the ⁠component sits beneath processors and memory ‌chips inside ‌advanced AI packages and enables them to ⁠communicate at high ⁠speeds.

• Under the five-year agreement, GlobalFoundries will expand manufacturing capacity at its Malta, New York, facility to produce the components for TSMC

• The Malta facility is ‌expected to become the ​first US-based source of silicon interposers used in advanced chip-packaging technologies, the company said

• Shares of GlobalFoundries were up about 4% in premarket trading

• The deal provides a framework for future capacity ​expansion as demand for advanced packaging ‌grows, with volume ‌production ⁠expected to begin ramping up in the first half of 2028

• Advanced packaging has become a major constraint on AI ‌chip production, as ​demand for the technology ‌exceeds available manufacturing ⁠capacity

(Reporting ​by Prathik Jayaprakash in Bengaluru; Editing by Jonathan ​Ananda)

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