GlobalFoundries signs $2 billion TSMC deal to make silicon interposers in New York, shares jump 4%

GFS said on Thursday it signed a multi-year $2 billion agreement to supply silicon interposers for TSM's CoWoS advanced packaging ecosystem from the United States. Under the deal, GlobalFoundries acts as a manufacturing service provider to TSMC and will add fabrication capacity at its Malta, New York facility. GlobalFoundries shares jumped 4% in premarket trading following the announcement.

The agreement has an initial five-year term and a framework to expand capacity as customer demand grows, with volume production expected to begin ramping at Malta during the first half of 2028. The scope includes embedded deep trench capacitor components, and GlobalFoundries expects the site to become the first U.S.-based source of silicon interposers for advanced packaging. "By providing manufacturing service using GF's trusted U.S. manufacturing footprint, we are creating a secure, scalable source of essential advanced-packaging elements," said Ed Kaste, senior vice president of CMOS Business at GF.

The deal targets a known choke point. CoWoS packaging capacity has lagged AI chip demand, and Counterpoint Research estimated last month that TSMC's CoWoS supply-demand gap could stay around 20% in 2026 before narrowing to roughly 10% in 2027. The announcement came the same day TSMC reported record third-quarter revenue of NT$1.49 trillion, up 50% from a year earlier, while TSM stock edged 0.5% lower in morning trade.

What to watch: the companies did not disclose how the $2 billion breaks down by year, what volumes it covers, or how the Malta expansion will be funded. With volume production not expected until 2028, the near-term revenue effect is limited, so execution milestones ahead of the ramp are the key checkpoints for GFS holders.