TSMC taps GlobalFoundries to bolster US silicon interposer production in $2B deal

US semiconductor fab GlobalFoundries has entered into a $2 billion deal with Taiwan Semiconductor Manufacturing Company (TSMC) to enhance American production of advanced semiconductors. The multi-year agreement will see GloFo manufacture silicon interposers for TSMC's CoWoS advanced packaging specification at its Malta, New York facility.

Silicon interposers are crucial components in the production of multi-die chip assemblies such as GPUs and AI accelerators. They provide a higher speed and lower power path for communication between chips, which is superior to conventional organic packaging. Nearly every chip utilizing high-bandwidth memory (HBM) relies on some form of interposer or interconnect bridge to interconnect the components.

This partnership aims to address the bottlenecks in America's semiconductor manufacturing supply chain. TSMC's previous attempts to establish advanced packaging facilities in the US, such as its collaboration with Amkor and the construction of facilities in Arizona, are not expected to come online until 2028 and 2029 respectively. In comparison, GlobalFoundries plans to expand its capacity at its Malta plant, with production expected to commence in the first half of 2028 at the earliest.

While advanced packaging remains a significant challenge for domestic chip manufacturing, it is not the only solution. Intel Foundry offers alternative solutions that include leading-edge process technology and advanced packaging capabilities comparable to TSMC's CoWoS offerings. Notably, Intel's packaging solutions are compatible with chips produced at TSMC's facilities.

Therefore, if the US were to prioritize chip manufacturing, customers could potentially leverage Intel's offerings without waiting for TSMC and Amkor's facilities to become operational.