On October 8, chipmaker GlobalFoundries (GF) announced a five-year manufacturing agreement with TSMC worth $2 billion. GlobalFoundries will produce silicon interposers at its Malta, New York, facility, providing new U.S.-based capacity for TSMC’s CoWoS advanced packaging ecosystem. According to the announcement, production is not expected to begin ramping up until the first half of 2028.[1]
Why do AI chips need this “connection baseboard”?
When people talk about AI computing power, they often focus on GPU performance or the chip’s process node. But a high-end AI accelerator is often more than a single chip: the compute chip and high-bandwidth memory (HBM) need to be closely connected to transfer massive amounts of data efficiently.
A silicon interposer can be thought of as a high-density connection baseboard placed beneath the compute chips and memory. Compared with conventional package wiring, it helps multiple chips communicate with higher bandwidth and lower power consumption. That’s why advanced packaging technologies such as CoWoS are becoming increasingly important in the AI server supply chain.[2]
Simply put, being able to manufacture chips doesn’t mean they can be assembled into AI accelerators ready for delivery in time; packaging capacity can also become a bottleneck.[2]
Why are the two foundries partnering?
According to GlobalFoundries’ official announcement, it will expand capacity at its existing New York facility to manufacture silicon interposers for TSMC that support CoWoS packaging. The new capacity will also cover designs that require components such as embedded deep-trench capacitors. The agreement provides a framework for further expansion as demand grows.[1]
This does not mean GlobalFoundries is taking over production of TSMC’s most advanced logic chips. The partnership focuses on a specific link in the packaging supply chain. Tom's Hardware notes that the silicon interposers needed for different AI processors may require customization, with designs tailored to the actual chip and memory layout. The two companies will still need to address manufacturing processes, quality certification, and compatibility with packaging workflows.[3]
Why does localization in the United States matter?
The production of high-end AI chips often spans multiple regions: wafer fabrication, memory supply, advanced packaging, and testing may not all take place in the same country. The Register notes that even if some advanced chips can already be manufactured on wafers in the United States, downstream packaging may still depend on overseas capacity. TSMC and its assembly and test partners are also building related facilities in the United States.[2]
The New York interposer project helps fill one gap in the supply chain, but it does not mean that “AI chips are now entirely made in the United States.” Tom's Hardware specifically cautions that the partners have not disclosed production volumes, how the investment will be divided, or how final packaging responsibilities will be allocated. Expanding interposer capacity also needs to be coordinated with chip assembly, testing, and high-bandwidth memory supply.[3]
What does this mean for everyday users and the industry?
In the short term, the agreement is unlikely to affect graphics card prices or immediately make AI models run faster: GlobalFoundries plans to start ramping up mass production only in the first half of 2028.[1] What’s really worth noting is what this reveals about another side of competition in the AI industry: computing capacity depends not only on chip design and wafer fabrication, but also on the entire manufacturing ecosystem that integrates compute units, memory, and packaging processes.
For cloud service providers and AI developers, a more diverse supply chain could improve supply resilience over time. But that still depends on actual production ramp-up, yields, customer qualification, and complementary packaging capacity; the deal’s value alone does not establish how many chips will ultimately be produced.[1][3]
References
- GlobalFoundries reaches agreement to establish U.S.-based supply of silicon interposers for advanced AI packaging — GlobalFoundries, accessed 2026-10-09
- TSMC taps GlobalFoundries to bolster US silicon interposer production in $2B deal — The Register, accessed 2026-10-09
- GlobalFoundries to produce silicon interposers for TSMC's CoWoS in the US — Five-year agreement valued at $2 billion — Tom's Hardware, accessed 2026-10-09
