TSMC taps GlobalFoundries in $2B U.S. chip deal; GFS shares jump 4%

Investing.com -- Shares of GlobalFoundries Inc (NASDAQ: GFS) jumped 4% in premarket trading on Thursday following the announcement of a $2 billion multi-year supply agreement with Taiwan Semiconductor Manufacturing Co (NYSE: TSM) to manufacture silicon interposers in the United States.

The agreement calls for GlobalFoundries to provide manufacturing services from its Malta, New York facility to support TSMC’s Chip-on-Wafer-on-Substrate (CoWoS) advanced packaging ecosystem. The partnership features an initial five-year term with an underlying framework to expand production capacity over time as customer demand increases.

Under the terms of the deal, GlobalFoundries will add fabrication capacity at its New York site to support TSMC's CoWoS framework. The additional infrastructure will scale advanced packaging solutions across multiple product generations while integrating embedded deep trench capacitor components.

The move addresses a critical bottleneck in the semiconductor supply chain, as high-performance computing and AI hardware increasingly rely on sophisticated packaging techniques to link memory and logic chips. Volume production at the Malta facility is expected to begin ramping during the first half of 2028.

For GlobalFoundries, the partnership validates its footprint in trusted U.S. manufacturing while positioning the foundry as an indispensable partner to the world’s leading chipmaker. The collaboration also signals growing alignment among top semiconductor manufacturers to establish resilient, onshore supply hubs for critical AI components.

Against that backdrop, market participants reacted positively to the partnership, viewing the contract as a strategic catalyst for GlobalFoundries' long-term manufacturing volume. Investors will likely monitor execution milestones leading up to the 2028 ramp alongside subsequent capacity expansion terms.

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