GlobalFoundries Wins Five-Year TSMC Deal to Build Silicon Interposers in New York

What happened

Under the five-year agreement, GlobalFoundries will expand manufacturing capacity at its Malta, New York, facility to produce the components for TSMC. 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 — a core piece of the AI chip advanced-packaging stack.

The company said the Malta facility is expected to become the first US-based source of silicon interposers used in advanced chip-packaging technologies. Volume production is expected to begin ramping in the first half of 2028, and the deal provides a framework for future capacity expansion as demand grows. GlobalFoundries shares were up about 4% in premarket trading. The deal was reported to be worth $2 billion.

Key facts

Five-year manufacturing deal: GlobalFoundries expands its Malta, New York, facility to produce silicon interposers for TSMC; reportedly a $2 billion agreement.

The silicon interposer is the key packaging component linking AI processors and memory chips, enabling high-speed communication between them in advanced AI packages.

The Malta facility will become the first US-based source of its kind; volume production ramps in H1 2028.

Context: advanced packaging has become a major constraint on AI chip production, with demand exceeding available capacity.

Market reaction: GlobalFoundries shares rose about 4% in premarket trading.