GlobalFoundries signs US$2 billion agreement to produce key CoWoS components for TSMC

First published 10-08 22:12

Update time 10-09 05:52

GlobalFoundries will produce key components for advanced packaging for TSMC. (Reuters)

[Compiled by Wei Guojin/Taipei Report] Reuters reported that GlobalFoundries announced on the 8th that it had reached a US$2 billion (NT$63.908 billion) agreement with TSMC to produce key components for TSMC at its New York factory to connect artificial intelligence (AI) processors and high-bandwidth memory (HBM).

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According to the report, the component, called a silicon interposer, is located under the processor and high-bandwidth memory in the advanced AI package, allowing the two to transmit data at high speeds.

According to the five-year agreement, GlobalFoundries will expand the production capacity of its Malta, New York, plant to produce related components for TSMC's CoWoS advanced packaging.

GlobalFoundries said the Malta plant is expected to be the first in the United States to produce silicon interposers for advanced packaging technologies.

As demand for advanced packaging continues to grow, this agreement lays the foundation for future capacity expansion, with production expected to begin increasing in the first half of 2028. The technology has become a major limitation in AI chip production as demand for advanced packaging outpaces existing production capacity.

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