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GlobalFoundries signs $2 billion agreement to supply AI chip components to TSMC

The five-year agreement calls for expanded manufacturing capacity in New York, with volume production expected to start ramping up in early 2028.

Illustration of processors and memory chips connected through a silicon interposer
Photo: CNA

GlobalFoundries said on October 8 that it had agreed to manufacture silicon interposers for TSMC under a five-year, $2 billion agreement. The company will add production capacity at its plant in Malta, New York, to supply the components used in advanced AI chip packages.

Silicon interposers sit below processors and memory chips, allowing them to exchange data at high speeds. Demand for advanced packaging exceeds manufacturing capacity, making it a major bottleneck for AI chip production.

GlobalFoundries said the Malta plant is expected to be the first U.S. manufacturing source for silicon interposers used in advanced packaging. Volume production is expected to start ramping up during the first half of 2028. The agreement also establishes a framework to add capacity in the future as packaging demand grows.

GlobalFoundries shares rose about 4% in premarket trading on October 8.

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Hao Chen

Technology Editor

Edits and reviews technology business stories: artificial intelligence, chips, big tech, software, cybersecurity incidents, start-ups and platform regulation.