UAE-backed GlobalFoundries and TSMC announce $2bn manufacturing agreement

UAE-backed semiconductor firm GlobalFoundries has entered into a $2 billion partnership with Taiwan Semiconductor Manufacturing Company (TSMC) to strengthen US chip manufacturing. The New York-based company will supply TSMC with silicon interposers, crucial components that facilitate communication between chips on logic boards. As artificial intelligence drives up semiconductor demand, advanced packaging has become a critical factor in delivering performance, power efficiency, and scale for next-generation AI systems, according to Ed Kaste, a senior vice president at GlobalFoundries.

By leveraging GlobalFoundries' trusted US manufacturing infrastructure, the agreement aims to provide a secure, scalable source of advanced-packaging elements, thereby supporting customer innovation and bolstering the semiconductor supply chain. The first large-scale production of silicon interposers is expected to commence at the beginning of 2028.

The deal lays the groundwork for potential capacity expansions as customer demand grows. TSMC, one of the world's leading chip manufacturers, has committed to investing at least $100 billion in the US for manufacturing and research. President Donald Trump highlighted the significance of the collaboration, pledging that the most powerful AI chips will be manufactured in America, with a substantial portion produced by TSMC.

GlobalFoundries, partially owned by Abu Dhabi's sovereign investment firm Mubadala Investment Company, is a key player in this strategic manufacturing alliance.