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US awards GlobalFoundries $300 million for AI chip link development

Created at 29 Jul · 10:39 AM1 source↑ Market-relevant
IN SHORT

The U.S. government will award GlobalFoundries $300 million to advance silicon photonics technology, aiming to improve AI data center efficiency and data transfer speeds. This funding is part of the CHIPS Act and aims to strengthen U.S. capabilities in critical semiconductor technologies.

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Key Numbers

$300 millionUS government award to GlobalFoundries
$150 millionPrevious commitment for semiconductor manufacturing equipment
$2 billionPrevious commitment for quantum computing
400 gigabits per secondTarget data transfer speed
five timesGreater energy efficiency target

Who's Involved

GlobalFoundries
Chipmaker receiving US government funding
Donald Trump
President whose initiative directs CHIPS Act funding
U.S. Department of Commerce
Provider of the funding
Tim Breen
CEO of GlobalFoundries
TSMC
Taiwanese manufacturer in silicon photonics supply chain
Tower Semiconductor
Israeli manufacturer in silicon photonics supply chain

↳ Why This Matters

This investment aims to bolster U.S. leadership in critical AI semiconductor technologies, reduce reliance on foreign supply chains, and enhance the performance and energy efficiency of future AI data centers.

Key facts

  • GlobalFoundries will receive $300 million from the U.S. government for silicon photonics research.
  • The funding is intended to enhance AI data center efficiency and data transfer speeds.
  • The technology uses light signals to move data between chips, offering higher bandwidth and lower power consumption.
  • The award is part of the U.S. CHIPS Act initiatives.
  • GlobalFoundries aims to achieve data transfer speeds of 400 gigabits per second.

The U.S. government is set to award GlobalFoundries $300 million to advance its silicon photonics technology, a move aimed at enhancing the efficiency and speed of AI data centers. This funding, part of President Donald Trump's CHIPS Act initiatives, seeks to bolster critical semiconductor research and development within the United States and compete more effectively with China.

Silicon photonics utilizes light signals instead of electrical ones to transmit data between chips, offering significant advantages in bandwidth and power consumption crucial for AI systems. The award will also support the development of co-packaged optics (CPO), which integrates silicon photonics directly with AI processors to further accelerate data transfer and improve energy efficiency.

GlobalFoundries stated its goal is to achieve data transfer speeds of 400 gigabits per second, a fivefold increase in energy efficiency compared to current technologies. CEO Tim Breen emphasized the company's decade-long investment in this technology and its capacity to scale it within the U.S. The research will be conducted at GlobalFoundries' facilities in Malta, New York, and Burlington, Vermont. The U.S. administration has previously allocated funds for semiconductor manufacturing equipment and quantum computing as part of its broader strategy to strengthen its technological standing.

Frequently asked questions

Silicon photonics is a technology that uses light signals, rather than electrical signals, to transmit data between computer chips. This allows for higher bandwidth and lower power consumption, which is particularly beneficial for AI systems.

Co-packaged optics (CPO) is a technology that integrates silicon photonics directly alongside AI processors. This integration further enhances data transfer speeds and energy efficiency.

The funding is part of the U.S. CHIPS Act and aims to strengthen the nation's position in critical semiconductor technologies, particularly in the global race with China, and to advance domestic manufacturing capabilities.

GlobalFoundries is targeting data transfer speeds of 400 gigabits per second and up to five times greater energy efficiency compared to current implementations.

What Happens Next

01GlobalFoundries will utilize its facilities in Malta, New York, and Burlington, Vermont for the research.
02The company aims to boost data transfer speeds to 400 gigabits per second.

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How It Developed

The U.S. government will award GlobalFoundries $300 million for silicon photonics R&D.
The funding aims to improve AI data center efficiency and data transfer speeds.
The award is part of the CHIPS Act's effort to bolster critical semiconductor technologies.
The technology uses light instead of electrical signals for data transfer between chips.
The funding also targets co-packaged optics (CPO) to boost data transfer speeds and energy efficiency.
GlobalFoundries aims to increase data transfer speeds to 400 gigabits per second.
Research will utilize GlobalFoundries' facilities in Malta, New York, and Burlington, Vermont.

Sources

T1
US to award GlobalFoundries $300 million to develop faster AI chip linksReuters

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