GlobalFoundries and TSMC Sign 2 Billion Dollar Deal to Build AI Chip Components in New York
GlobalFoundries and TSMC announced a five-year, $2 billion agreement on October 8, 2026, to produce silicon interposers at GlobalFoundries' facility in Malta, New York. The components are critical for high-performance AI accelerators and GPUs. Volume production is expected to begin in the first half of 2028, reducing U.S. reliance on overseas chip packaging.
GlobalFoundries and TSMC announced a five-year, $2 billion manufacturing partnership on October 8, 2026, to produce silicon interposers at GlobalFoundries' fab in Malta, New York.
Silicon interposers are components used in advanced chip packaging. They provide high-speed, low-power connections between logic and memory dies inside AI accelerators and GPUs. Until now, chips like Nvidia's Blackwell series often had to be shipped to Taiwan for final assembly and packaging. The new deal aims to bring that work to the United States.
GlobalFoundries will expand its Malta facility to support TSMC's Chip-on-Wafer-on-Substrate packaging ecosystem, known as CoWoS. The company also plans to integrate embedded deep trench capacitor components into its offerings at the site. Volume production is expected to start in the first half of 2028.
TSMC is building its own advanced packaging facilities in Arizona and has partnered with Amkor, but those sites are not expected to be operational until 2028 or 2029. The GlobalFoundries deal provides an earlier path to domestic high-performance chip assembly.
The agreement includes a framework for further capacity expansion as demand grows. Both companies said the deal supports broader U.S. efforts to build a more resilient domestic semiconductor supply chain.
