US Backs GlobalFoundries with $300Million for AI Chips
GlobalFoundries announced that the U.S. government will provide $300 million to support the company’s research and development efforts in silicon photonics, a technology seen as critical for building more efficient AI data centers.
The funding forms part of a broader push by Washington to strengthen domestic semiconductor innovation and reduce reliance on foreign supply chains.
The initiative aligns with President Donald Trump’s strategy to channel CHIPS Act research funding into key semiconductor technologies, as the United States seeks to maintain a competitive edge against China in the global technology race.
Previously, the government committed $150 million toward semiconductor production tools and $2 billion for quantum computing, underscoring its focus on next-generation technologies.
Silicon photonics enables data transfer using light instead of electrical signals, significantly increasing bandwidth while lowering power consumption—two essential factors for scaling artificial intelligence systems.
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The new funding from the U.S. Department of Commerce will specifically support the development of co-packaged optics (CPO), which integrates silicon photonics directly with AI processors to boost speed and energy efficiency.
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Currently, much of the silicon photonics and advanced optical packaging supply chain is based outside the United States, with major players such as Taiwan’s TSMC and Israel’s Tower Semiconductor leading production. By investing domestically, the U.S. aims to reclaim technological leadership in this critical segment.
GlobalFoundries plans to use the funding to achieve data transfer speeds of up to 400 gigabits per second and deliver as much as five times greater energy efficiency compared to current solutions.
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CEO Tim Breen emphasized that the company has spent over a decade building the expertise and infrastructure needed to lead this transformation. The research will be conducted at facilities in Malta, New York, and Burlington, Vermont.