GlobalFoundries and TSMC have signed a multiyear manufacturing agreement valued at $2 billion to create a U.S.-based supply of silicon interposers for TSMC’s CoWoS advanced-packaging system. GlobalFoundries plans to add capacity at its existing Malta, New York, fab, with volume production expected to ramp in the first half of 2028. The agreement is a future supply arrangement, so its full production effect is still ahead.

The deal is aimed at a part of the semiconductor supply chain that sits between chip fabrication and final packaging. TSMC’s CoWoS technology places multiple logic chips and high-bandwidth memory on an interposer, which provides dense connections inside high-performance packages. As AI systems combine more compute and memory in one package, manufacturers need capacity for those packaging layers as well as for the processor chips themselves.

What the $2 billion covers

GlobalFoundries says it will provide manufacturing service to TSMC and expand capacity at its Malta facility. The companies announced a multiyear agreement with an initial five-year term and a stated value of $2 billion. The release does not break that value into annual revenue or say how many interposers the facility will make.

GlobalFoundries describes the arrangement as the first U.S.-based source of silicon interposers for this category of advanced packaging. TSMC has not released a separate customer allocation, production volume or schedule for individual chip programs. The manufacturing schedule is the clearest public milestone: production is expected to begin ramping during the first half of 2028.

GF says the expansion can support embedded deep-trench capacitor components and multiple product generations. TSMC describes placing these components beneath a system-on-chip die to support package power management. The release does not specify fab investment, output capacity or qualification timing for those parts, and capacity remains conditional on customer demand.

Why silicon interposers matter

TSMC describes CoWoS as a way to integrate multiple system-on-chip components and high-bandwidth memory through an interposer. The interposer is not the main logic processor. It is a silicon platform with fine connections that lets the package combine components and move data between them. TSMC says CoWoS-S can place logic chiplets and stacked high-bandwidth memory on a large silicon interposer, helping designers increase compute and memory bandwidth inside one package.

The TSMC method has multiple versions. CoWoS-S uses a silicon interposer; other CoWoS approaches use different interconnect structures. The GlobalFoundries agreement specifically concerns silicon interposers for TSMC’s CoWoS ecosystem. It does not mean GlobalFoundries will manufacture the processor chips or assemble every finished AI accelerator.

A cutaway package shows a silicon interposer connecting a central logic die with two stacked memory modules.
Concept illustration of a silicon interposer linking logic and stacked memory inside one package.

What this changes for U.S. supply

If production ramps up as scheduled, U.S.-based production will be added to an advanced-packaging supply chain that TSMC and its customers use for high-performance computing and AI systems. The arrangement could give TSMC a domestic source for one component while adding manufacturing work at GlobalFoundries’ New York site. It does not say that all CoWoS packaging will move to New York or name a specific chip order that will use these interposers.

Yield targets are also unpublished. Without output and timing details, the announcement cannot establish the added supply or revenue in any given year. The initial five-year term begins with the future ramp, still more than a year away; it is not a forecast of current production or utilization.

One r/AMD_Stock discussion asked whether the agreement could benefit AMD. The public announcement names TSMC as the customer and does not disclose an AMD order. That investor thread is a limited market discussion, not evidence of a customer commitment.