Shares in GlobalFoundries, the US semiconductor manufacturer, rose more than 4% to $49.86 on Thursday after the company announced a multiyear, $2 billion agreement with TSMC to expand US production of advanced packaging components.
Under the deal, GlobalFoundries will add manufacturing capacity at its Malta, New York, facility to supply silicon interposers for TSMC's CoWoS advanced packaging technology.
CoWoS, which stands for Chip on Wafer on Substrate, is a chip-stacking method that combines multiple semiconductors in a single package and is widely used in AI and high-performance computing systems.
GlobalFoundries said the agreement will establish the first US-based source of silicon interposers for TSMC's CoWoS ecosystem, adding domestic supply-chain capacity at a time of growing demand for AI infrastructure.
The company expects volume production to begin ramping at the Malta facility in the first half of 2028, with the initial agreement running for five years.
GlobalFoundries will also manufacture components incorporating embedded deep trench capacitors, a technology that improves power efficiency in high-performance chips, broadening the range of advanced packaging elements it can produce at the site.
The deal matters because advanced packaging has become a critical step in building AI hardware, allowing chipmakers to combine high-performance processors and memory in ways that improve speed and reduce power consumption.
The agreement includes a framework for further capacity expansion as customer demand increases, potentially giving GlobalFoundries a larger role in the US supply chain supporting advanced AI computing.
