GlobalFoundries announced a $2 billion agreement with TSMC on October 8 to make silicon interposers in Malta, New York. The company said the initial five-year deal will add US manufacturing capacity for TSMC’s CoWoS advanced packaging system, serving AI and high-performance computing demand.
Interposers sit beneath processors and memory chips and let them exchange data at high speed, Reuters reported. Advanced packaging has become a bottleneck for AI chip production because demand exceeds capacity, making these connections an important part of the supply chain.
GlobalFoundries said it plans to expand its Malta plant and establish what it describes as the first US source of silicon interposers for advanced packaging. The planned capabilities include embedded deep trench capacitor components. Added capacity is intended to support several product generations.
Ed Kaste, the company’s senior vice president of CMOS Business, said advanced packaging is increasingly important for AI performance, energy efficiency and scale. He said US manufacturing would provide a secure source of essential components and help strengthen semiconductor supplies.
Reuters reported that GlobalFoundries shares rose about 4% in trading before the US market opened. The agreement concerns the components connecting chips within advanced packages, placing the New York expansion in a part of AI hardware production already facing supply constraints.
Volume production is expected to begin ramping in the first half of 2028, according to GlobalFoundries. The contract also allows for later capacity expansion as customer demand grows. The announced schedule therefore points to additional supply in 2028 rather than an immediate increase in output.
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