Globalfoundries to Receive $300 Million for Silicon Photonics

Subsidies for Optical AI Connections Globalfoundries to Receive $300 Million for Silicon Photonics

2026-08-03 Source: Press release | Translated by AI 2 min Reading Time

Globalfoundries and the U.S. Department of Commerce have signed a memorandum of understanding for planned funding of $300 million. The funds are to be invested in new materials, wafer technologies, and packaging processes for silicon photonics.

The executives at Globalfoundries are planning for additional funds from the CHIPS Act.(Image: Globalfoundries) — The executives at Globalfoundries are planning for additional funds from the CHIPS Act.
(Image: Globalfoundries)

Globalfoundries signed a letter of intent with the U.S. Department of Commerce at the end of July 2026 for funding worth $300 million, as officially announced. These funds are intended to come from the research and development program of the U.S. CHIPS Act. The funding will support the development of optical materials, new wafer technologies, and advanced packaging processes.

The company aims to specifically advance Near-Packaged Optics (NPO) and Co-Packaged Optics (CPO). NPO brings optics closer to the chip, while CPO integrates it onto its package. Both approaches are needed when copper reaches its limits in terms of bandwidth, range, and energy consumption. Additionally, 3D hybrid bonding is set to be used, enabling tighter integration of various semiconductor and photonic components.

400 Gbps and Higher Energy Efficiency as the Goal

The work is based on Globalfoundries' SCALE platform, which stands for "Silicon Photonics Co-Packaged Advanced Light Engine." The company cites a data rate of 400 Gbps and five times higher energy efficiency compared to current-generation implementations as its development goals. These remain target values provided by the manufacturer.

The research and development efforts aim to expand existing capacities in the U.S. Globalfoundries intends to establish a pathway for mass production of silicon photonics in the U.S.; according to Reuters, the offering is expected to eventually range from raw silicon wafers to tested optical modules.

In a separate agreement, the U.S. Department of Commerce is set to receive company shares equivalent to approximately one percent of Globalfoundries' total shares at the time of the announcement. According to the company, this arrangement allows the public sector to benefit from any potential value growth of the contract manufacturer. The funding is strategically significant for Globalfoundries. While the contract manufacturer does not compete with TSMC, Samsung, or Intel in cutting-edge logic processes, it can establish itself in specialized technologies such as high-frequency chips, silicon photonics, and advanced packaging. The integration of electronics and optics is becoming an important growth area due to the expansion of AI data centers.

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Date: 08.12.2025

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