GlobalFoundries (GF) has announced a significant manufacturing agreement with TSMC, aiming to establish a US-based supply of silicon interposers for TSMC’s CoWoS® advanced packaging ecosystem. This multi-year, $2 billion deal will bolster the capacity of the advanced packaging ecosystem and address the escalating demand driven by artificial intelligence (AI) and high-performance computing (HPC) technologies.
Expanding US Manufacturing Capabilities
Under the terms of the agreement, GF will provide manufacturing services to TSMC and expand production capacity at its facility in Malta, New York. This initiative marks a pivotal step in building the first US-based silicon interposer manufacturing site, supporting advanced packaging technologies that include embedded deep trench capacitor components. The new manufacturing capacity is designed to offer greater scale and flexibility for advanced packaging solutions across multiple product generations.
Ed Kaste, Senior Vice President of GF’s CMOS Business Unit, highlighted the critical role of advanced packaging. “Advanced packaging is becoming increasingly critical for achieving the performance, power efficiency, and scale required for next-generation AI systems,” Kaste stated. “By leveraging GF’s trusted US manufacturing footprint to provide manufacturing services, we are building a secure, scalable source for critical advanced packaging components that will help our customers accelerate innovation and strengthen the semiconductor supply chain.”
Meeting Future Demand
The agreement lays the groundwork for progressive capacity expansion as customer demand grows. GF plans to enhance its Malta facility’s capabilities, creating a robust domestic source for these essential semiconductor components. This move is expected to significantly benefit the North American semiconductor manufacturing landscape, particularly in supporting the rapidly growing AI and HPC sectors.
The GF facility in Malta is slated to begin a phased ramp-up of volume production in the first half of 2028. The initial term of this agreement is set for five years, with provisions for future capacity expansions, ensuring a long-term strategic partnership between the two semiconductor giants. This collaboration underscores a growing trend of onshoring critical manufacturing processes to ensure supply chain resilience and technological leadership in the United States.
Impact on the Semiconductor Industry
This partnership between GlobalFoundries and TSMC is poised to have a substantial impact on the semiconductor industry, particularly in the advanced packaging segment. Silicon interposers are crucial components that enable the high-density interconnects required for advanced chiplets and complex system-on-chip (SoC) designs prevalent in AI and HPC applications. By establishing a domestic supply, the US aims to reduce reliance on overseas manufacturing and bolster its position in the global semiconductor race.
The investment in GF’s Malta facility signifies a commitment to innovation and domestic production. It will not only create jobs but also foster technological advancements within the US, enabling faster development cycles and greater supply chain security for American technology companies. The phased ramp-up ensures that GF can meet the rigorous quality and volume demands of TSMC and its clients, contributing to a more robust and responsive global semiconductor ecosystem.
