GlobalFoundries signs $2B deal to supply TSMC’s AI packaging, targeting production in 2028
The five-year agreement would establish a U.S. source for silicon interposers, not a complete chipmaking or packaging service.
Listen to this story
The audio brief
Story brief
3 key pointsThe agreement adds GlobalFoundries as a U.S.-based manufacturing source for silicon interposers used in TSMC’s CoWoS advanced-packaging ecosystem; it does not shift TSMC’s broader chipmaking or packaging operations. The planned Malta, New York, capacity is intended to support AI and high-performance-computing demand, but it will not begin ramping until the first half of 2028. The commitment could diversify a component of TSMC’s packaging supply chain, though the companies have not disclosed expected output or unit economics.
- 01
The five-year agreement is valued at $2 billion and includes a framework for expanding capacity if customer demand grows.
- 02
GlobalFoundries plans to make silicon interposers and embedded deep trench capacitor components for TSMC’s CoWoS ecosystem.
- 03
GlobalFoundries says the Malta expansion would create the first U.S.-based source of silicon interposers for advanced packaging.
GlobalFoundries has agreed to supply a piece of TSMC’s AI-packaging supply chain under a $2 billion manufacturing agreement, with production expected to begin ramping in the first half of 2028. Announced October 8, 2026, the deal calls for added capacity in Malta, New York—a future supply commitment rather than capacity available today.
A component supplier, not a replacement for TSMC
The agreement’s scope is specific: GlobalFoundries will manufacture silicon interposers, silicon components used in advanced packaging, for TSMC’s CoWoS ecosystem. TSMC is the customer for that manufacturing service. The work concerns those packaging elements, not an agreement for GlobalFoundries to take over TSMC’s complete chipmaking or packaging operations.
GlobalFoundries links the added manufacturing capacity to growing demand for AI and high-performance computing systems. Its stated goal is greater scale and flexibility in delivering advanced-packaging solutions across multiple product generations. The company is positioning the Malta expansion to serve that continuing demand, rather than describing it as a one-generation project.
Advanced packaging is becoming increasingly critical to delivering the performance, power efficiency and scale required for next-generation AI systems.
Ed Kaste, senior vice president of CMOS Business at GlobalFoundries
Malta’s role in U.S. packaging supply
GlobalFoundries says its Malta expansion is expected to establish the first U.S.-based source of silicon interposers supporting advanced packaging technologies. The planned capability includes embedded deep trench capacitor components. Kaste described the U.S. manufacturing footprint as the basis for a secure, scalable source of essential advanced-packaging elements.
The initial agreement runs for five years and includes a framework for future capacity expansion as customer demand grows. That gives the companies a way to extend the manufacturing relationship through additional capacity over time, beyond the Malta additions now planned.
The $2 billion figure covers the multi-year agreement. The announcement does not quantify output, unit pricing or the split between manufacturing investment and purchases, leaving the scale of deliveries and their economics unspecified.
Sources
- gf.comGlobalFoundries reaches agreement to establish U.S.-based supply of silicon interposers for advanced AI packaging | GlobalFoundries
Reader comments
Newest comments first. Replies stay oldest first.