GlobalFoundries Reaches Supply Agreement with TSMC for AI Chip Component

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Written by Danny Levin, Deputy Editor for IIR News Intelligence (Sugar Land, Texas)

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Summary

GlobalFoundries reached a U.S.-based, $2 billion supply agreement to provide TSMC with a crucial AI chip component, which will require an expansion of one of its manufacturing plants. Industrial Info Resources is tracking six capital projects from GlobalFoundries worth $16 billion and two major U.S. projects from Taiwan Semiconductor Manufacturing Company under construction.

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GlobalFoundries-TSMC Deal

GlobalFoundries (GF) reached a U.S.-based, $2 billion supply agreement to provide Taiwan Semiconductor Manufacturing Company (TSMC) with a crucial artificial intelligence (AI) component, which will require an expansion of one of its manufacturing plants.

Industrial Info Resources data show six capital projects from GlobalFoundries worth $16 billion and two major projects in the U.S. from TSMC under construction.

Under the initial five-year supply agreement, GF said it will supply silicon interposers for TSMC's CoWoS (Chip-on-Wafer-on-Substrate) advanced packaging ecosystem by adding fabrication (fab) capacity at its site in Malta, New York. Silicon interposers are used in semiconductor packaging by connecting AI processing chips and memory chips in order to route data.

GF expects "volume production" at the Malta site will begin during the first half of 2028. The agreement also provides a framework for future capacity expansion.

"Advanced packaging is becoming increasingly critical to delivering the performance, power efficiency and scale required for next-generation AI systems," said Ed Kaste, senior vice president of GlobalFoundries' CMOS (Complementary Metal-Oxide-Semiconductor) business. "By providing manufacturing service using GF's trusted U.S. manufacturing footprint, we are creating a secure, scalable source of essential advanced-packaging elements that will help customers accelerate innovation and strengthen the semiconductor supply chain."

Project Activity Underway at the Malta Site

The Industrial Info Resources Global Market Intelligence (GMI) Industrial Manufacturing Project Database shows two major projects at the Malta site.

The $11 billion-plus Fab 8.2 expansion will add a second semiconductor fabrication plant to the existing campus, with the 358,000-square-foot facility aimed at increasing production of chips used for the automotive, defense and aerospace industries, among other applications.

Another project at the site in a later stage of construction is a packaging facility that will be used to manufacture, process, package and test chips for a variety of end markets, including AI. Readers can view the related project reports and plant profile.

These are part of GlobalFoundries' $16 billion investment plan. For more information, see June 5, 2025, article - GlobalFoundries to Increase Investment in U.S. Semiconductor Chip Manufacturing.

TSMC's Buildout

TSMC is one of many major chipmakers looking to build out its U.S. footprint via capital spending. This includes its multi-building semiconductor manufacturing hub that the company is constructing in Phoenix, Arizona. The first fab began operating in early 2025, but another two fabs worth a combined $24 billion are under construction, with startup dates of 2028 and 2030. View the project reports here. Industrial Info Resources is tracking is tracking another $330 billion that TSMC is considering at the site, including three additional fabs and expansions to existing facilities.

For more information on the state of semiconductor manufacturing and TSMC's manufacturing buildout, see July 31, 2026, article - U.S. Semiconductor Projects Progress in New York, Texas & Elsewhere and May 6, 2026, article - Taiwan Semiconductor Manufacturing Sees US$67 Billion of Ongoing Construction.

Key Takeaways

• GlobalFoundries signed a $2 billion agreement to supply TSMC with U.S.-based silicon interposers, a key component of semiconductor chips used for AI.
• As a result, the company will expand its campus in Malta, New York.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).