GlobalFoundries said on 8 October it had reached a $2 billion, five-year agreement to make silicon interposers for TSMC at its Malta, New York, facility, Reuters reported.
Key points
- GlobalFoundries will expand capacity at Malta to produce silicon interposers for TSMC under the five-year agreement.
- The company says Malta is expected to become the first US-based source of interposers for advanced chip packaging.
- Volume production is expected to begin ramping in the first half of 2028.
Malta capacity for TSMC’s chip packages
The agreement puts GlobalFoundries in charge of expanding manufacturing capacity at Malta to supply the components to TSMC. It also provides a framework for further capacity expansion as demand for advanced packaging grows, according to Reuters.
GlobalFoundries says its Malta plant is expected to be the first in the US to supply silicon interposers for advanced chip packaging. That expectation concerns the source of the components. Volume production is expected to begin ramping in the first half of 2028.
The $2 billion figure covers the agreement over five years. Under its terms, GlobalFoundries will expand the New York facility’s capacity to make interposers for TSMC, while the framework leaves room for further expansion tied to demand for advanced packaging.
Silicon interposers link processors and memory
A silicon interposer sits beneath processors and memory chips within an advanced AI package. It enables high-speed communication between those parts. The component GlobalFoundries has agreed to make is therefore part of the chip package rather than the processor or memory chip itself.
Advanced packaging has become a major constraint on AI chip production because demand exceeds available manufacturing capacity, Reuters reported. The agreement addresses one part of that capacity: production of the interposers used to connect processors and memory inside the finished package.
For TSMC, the arrangement adds a planned US-based source of a packaging component. For GlobalFoundries, it brings a five-year manufacturing agreement and an expansion at its existing Malta facility. Further capacity growth sits within the framework described in the deal.
GlobalFoundries shares and the 2028 ramp
GlobalFoundries shares were up about 4% in premarket trading.
The manufacturing plan has a longer timetable than the share-price reaction. The five-year agreement sets out the capacity expansion, while the provision for further expansion is linked to growth in advanced-packaging demand.
GlobalFoundries is expected to begin ramping volume production in the first half of 2028.
