TSMC Taps GlobalFoundries In $2B AI Chip Deal, Putting GFS Stock On Track To Hit Over 1-Month High

• Volume production is expected to begin ramping up in the first half of 2028.
• GlobalFoundries expects the expanded facility to become the first U.S.-based source of silicon interposers for advanced packaging technologies.
• TSMC on Thursday reported third-quarter revenue of $46.71 billion, up 50% year over year, while September revenue reached approximately $16.03 billion.

GlobalFoundries (GFS) shares rallied Thursday morning, bucking the broader market's drawdown, after the company announced it had signed a $2 billion manufacturing agreement with Taiwan Semiconductor Manufacturing Company (TSM) to produce silicon interposers at its New York plant. 

The initial term of the agreement is five years, and volume production should start ramping in the first half of 2028, the company said.

GFS stock rose nearly 6% in morning trade, on track to hit an over one-month high if gains hold till market close. On Stocktwits, retail sentiment around GlobalFoundries continued to trend in ‘neutral’ territory.  

GlobalFoundries Expands US Manufacturing For AI Chips

GlobalFoundries said that the deal will support an expansion of manufacturing capacity at the Malta facility, which the company expects to become the first U.S.-based source of silicon interposers for advanced packaging technologies. 

These include embedded deep trench capacitor components designed to support increasingly demanding computing applications.

“Advanced packaging is becoming increasingly critical to delivering the performance, power efficiency and scale required for next-generation AI systems,” stated Ed Kaste, senior vice president of CMOS Business at GlobalFoundries.

TSMC Deal Comes Amid AI Packaging Constraints

Silicon interposers are a key part of TSMC’s Chip-on-Wafer-on-Substrate (CoWoS) advanced packaging technology, which connects AI processors with high-bandwidth memory. Constraints in CoWoS capacity have become a bottleneck for AI chip production as demand has outpaced available manufacturing capacity.

Last month, Counterpoint Research estimated that the supply-demand gap for TSMC’s CoWoS packaging capacity could remain around 20% in 2026 before narrowing to roughly 10% in 2027 as additional capacity comes online. 

TSMC, a major supplier to Nvidia (NVDA) and Apple (AAPL), is working to meet demand for increasingly complex chips used in AI systems. For GlobalFoundries, the agreement offers a path to expand its role in that market while adding advanced packaging manufacturing capacity in the United States.

TSMC reported record third-quarter revenue of NT$1.49 trillion ($46.71 billion) on Thursday, up 50% from a year earlier and above analysts’ expectations of about $45.8 billion. The company’s September revenue reached approximately $16.03 billion, up 54.6% year over year.

TSM stock edged 0.5% lower in morning trade. On Stocktwits, retail sentiment around the company shifted to ‘extremely bullish’ from ‘bullish’ territory over the past day. Chatter remained at ‘high’ levels. 

(Exchange Rate: NT$1 = US$0.03135)

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