GlobalFoundries (GFS) signed a letter of intent with the U.S. Department of Commerce for a $300 million award under the CHIPS and Science Act.
The funding will accelerate research and development of next-generation silicon photonics. This technology uses light instead of electricity to transfer data for AI and high-performance computing data centers.
The investment supports optical materials, new wafer technologies, and advanced packaging at facilities in Malta, New York, and Burlington, Vermont.
The Commerce Department will receive an equity stake of approximately 1% in the company. GlobalFoundries shares rose significantly in premarket trading following the announcement.