GlobalFoundries announced Wednesday that it has signed a letter of intent with the U.S. Department of Commerce for a $300 million CHIPS Act award to advance silicon photonics research and development.
The semiconductor maker will use the funds to develop optical chip interconnect technologies aimed at boosting AI data center performance
Bloomberg / Getty Images
GlobalFoundries announced Wednesday that it has signed a letter of intent with the U.S. Department of Commerce for a $300 million CHIPS Act award to advance silicon photonics research and development.
Silicon photonics transmits data via light rather than electricity, which allows AI systems to achieve greater bandwidth while drawing less power. Among the technologies the funding will support is co-packaged optics, an approach that places silicon photonics circuitry in direct proximity to processors, along with next-generation optical materials, wafer technologies, and advanced packaging, all with the goal of improving interconnect performance and reducing energy use.
GlobalFoundries said its goals include reaching 400 gigabits per second in data transfer throughput and cutting energy consumption to a fifth of what current-generation systems require. GlobalFoundries plans to conduct the work at its campuses in Malta, New York, and Burlington, Vermont.
As part of a separate agreement tied to the award, the U.S. Department of Commerce will receive an equity stake in GlobalFoundries representing approximately 1% ownership, the company said.
"Silicon photonics is essential to AI infrastructure," GlobalFoundries CEO Tim Breen said in a statement. "GlobalFoundries has spent more than a decade building the technology, footprint and ecosystem to lead this transition, and we have the proven manufacturing foundation to scale it — in the United States."
Much of the supply chain for silicon photonics and advanced optical packaging is currently concentrated outside the United States, according to Reuters.
Commerce Secretary Howard Lutnick said in a statement that the investment would "enhance our country's domestic capabilities, create high-paying jobs and keep America at the forefront of the semiconductor industry."
The announcement drew support from several major technology companies. NVIDIA founder and CEO Jensen Huang said in a statement that silicon photonics is "essential" to scaling U.S. manufacturing. Executives from AMD $AMD, Broadcom $AVGO, Cisco $CSCO, Meta $META, Microsoft $MSFT, and Qualcomm $QCOM also issued statements endorsing the investment.
The CHIPS Act award is part of the Trump administration's broader effort to direct research funding toward critical semiconductor technologies. The administration has previously committed $150 million for semiconductor manufacturing equipment and $2 billion for quantum computing, according to Reuters.
Join 500,000+ readers who start their day with Quartz.
By subscribing, you agree to our Terms of Service and Privacy Policy.