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

UAE-backed semiconductor manufacturer GlobalFoundries has announced a $2 billion partnership with Taiwan Semiconductor Manufacturing Company (TSMC) to strengthen US chip production. Based in New York, GlobalFoundries will supply TSMC with silicon interposers, crucial components that facilitate chip communication on logic boards.

The demand for interposers is surging as artificial intelligence drives unprecedented semiconductor usage. Ed Kaste, a senior vice president at GlobalFoundries, emphasized the importance of advanced packaging in delivering performance, power efficiency, and scalability for next-generation AI systems. By leveraging GlobalFoundries' trusted US manufacturing base, this collaboration aims to provide a secure, scalable source of advanced-packaging elements, enabling customers to accelerate innovation and bolster the semiconductor supply chain.

Production of silicon interposers at scale is set to begin early 2028. The agreement lays the groundwork for future capacity expansion as customer demand increases. TSMC, one of the world's leading chipmakers, is investing $100 billion in the US over the past year to bolster manufacturing and research. President Donald Trump, alongside TSMC CEO CC Wei, highlighted that the most powerful AI chips will be produced in America, with a significant portion coming from TSMC.

GlobalFoundries, owned partly by Abu Dhabi’s sovereign fund Mubadala Investment Company, is playing a pivotal role in this strategic alliance.