By Ian King | Updated on Oct 08, 2026 at 04:26 PM
GlobalFoundries Inc. shares gained as much as 7% after the chip manufacturer announced a five-year, $2 billion deal to provide US production capacity to Taiwan Semiconductor Manufacturing Co.
Under the agreement, announced Thursday, GlobalFoundries will help supply components known as silicon interposers. The US company will rely on manufacturing at its facility in Malta, New York, and said it has the option to expand capacity “as customer demand grows.”
An interposer is a small layer of silicon that sits between a chip and its packaging. It’s home to the wires that carry electronic signals and power needed to make that chip functional. The components are increasingly important as semiconductors become larger and companies combine multiple chips into the same package.
The deal provides TSMC with an additional US-based source of production at a time when the Taiwanese company is working to expand its American footprint. TSMC is the dominant chip foundry — a business that produces semiconductors for outside customers — and serves clients such as Nvidia Corp., Apple Inc. and Advanced Micro Devices Inc.
Shares of GlobalFoundries rose as high as $51.45, marking their biggest intraday gain in three weeks. The stock had been up 38% this year through Wednesday’s close.
GlobalFoundries’ foundry business is generally focused on less sophisticated chips, what it calls “essential semiconductors.” Greater interest in technology like silicon interposers for packaging is giving the company a role to play in more advanced AI components.
“Advanced packaging is becoming increasingly critical to delivering the performance, power efficiency and scale required for next-generation AI systems,” Ed Kaste, a GlobalFoundries senior vice president, said in the statement.
The company expects to begin ramping up volume production of the TSMC components in the first half of 2028.