GlobalFoundries and TSMC Strike $2 Billion Deal to Supercharge US AI Chip Production

UAE-backed semiconductor manufacturer GlobalFoundries has announced a major $2 billion agreement with Taiwan Semiconductor Manufacturing Company aimed at strengthening US chip manufacturing capabilities.

Based in New York, GlobalFoundries stated it will supply Taiwan Semiconductor Manufacturing Company with silicon interposers, crucial components that enable chips to communicate effectively on logic boards. The demand for these interposers has surged as artificial intelligence drives unprecedented requirements for semiconductors.

“Advanced packaging is becoming increasingly critical to delivering the performance, power efficiency and scale required for next-generation AI systems,” explained Ed Kaste, a senior vice president at GlobalFoundries.

Primarily owned by the UAE sovereign wealth fund, Mubadala Investment Company, GlobalFoundries operates a New York fabrication plant that will facilitate this production. Ed Kaste added, “By providing manufacturing services using GlobalFoundries' trusted US 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.”

Large-scale production of the silicon interposers is projected to begin at the start of 2028. According to the company's press release, the agreement establishes a strong foundation to expand capacity over time in response to growing customer demand.

Taiwan Semiconductor Manufacturing Company ranks among the world's largest chip makers. Previously, President Donald Trump announced that the Taiwan-based company would invest at least $100 billion in the United States to boost local manufacturing and research efforts.

As the United States and China vie for influence in the AI sector, semiconductor manufacturing is rapidly emerging as a critical strategic asset. Reflecting on the broader initiative alongside Taiwan Semiconductor Manufacturing Company chief executive CC Wei, President Donald Trump stated at the time: “This is a tremendous thing for our country and hopefully his company. The most powerful AI chips in the world will be built right here in America and it will be a big percentage of those chips made by his company.”

Ultimately, GlobalFoundries remains jointly owned by Abu Dhabi’s sovereign fund, Mubadala Investment Company.