GlobalFoundries–TSMC $2 billion interposer deal — moving AI's packaging bottleneck to New York by 2028
On October 8, 2026, US foundry GlobalFoundries (GF) announced a five-year, $2 billion agreement with Taiwan's TSMC to manufacture silicon interposers for TSMC's CoWoS advanced packaging at GF's fab in Malta, New York. The interposer is the thin silicon layer that connects AI processors to high-bandwidth memory (HBM) inside one package, and it has been a bottleneck for AI accelerator supply. Malta becomes the first US source of silicon interposers, which will include embedded deep trench capacitors to stabilise power delivery. Volume production is due to start in the first half of 2028. GF shares rose as much as 7% after the announcement
The three lines
- Deal — GF makes CoWoS silicon interposers for TSMC: five years, $2 billion, extension options
- Why it matters — first US interposer source; US-made AI chips are still packaged in Taiwan today
- Timeline — volume in H1 2028; Amkor US CoWoS 2028, TSMC Arizona packaging 2029
Key questions
- GlobalFoundries TSMC deal
- **A five-year, $2 billion interposer manufacturing agreement announced October 8, 2026.** | Item | Detail | |---|---| | Product | Silicon interposers for CoWoS | | Feature | Embedded deep trench capacitors (DTC) | | Site | GF fab, Malta, New York | | Term | Five years, extension options, capacity-expansion framework | | Volume production | First half of 2028 | | Market reaction | GF up as much as 7% intraday |
- CoWoS production in the US
- **It arrives in stages, between 2028 and 2029.** | Company | US role | Expected start | |---|---|---| | GF (Malta) | Interposer manufacturing | H1 2028 | | Amkor (Arizona) | CoWoS-compatible packaging service | 2028 | | TSMC (Arizona) | Own advanced packaging plants | 2029 | | Intel Foundry | Its own CoWoS-class packaging | Operating, but requires designing for Intel's flow |
- What does a silicon interposer do
- **It is the 'bridge board' wiring AI chips to HBM with thousands of connections.** | Item | Detail | |---|---| | Position | Under the dies (GPU, HBM), on top of the substrate | | Structure | Thin silicon with through-silicon vias (TSVs) | | Advantage | Faster and lower-power than ordinary organic substrates | | Used in | Almost every HBM-based AI accelerator |
Even Nvidia chips made in Arizona still fly to Taiwan for their final packaging. The advanced packaging that binds AI processors and memory into one unit does not yet exist at scale in the US. On October 8, 2026, US foundry GlobalFoundries (GF) announced a deal that fills one piece of that gap: it will make silicon interposers for TSMC's CoWoS packaging at its Malta, New York fab for five years, in a contract worth $2 billion. Two foundry rivals teamed up for one reason. AI's bottleneck is no longer etching the chips; it is packaging them.
1. The deal — what, where, when
| Item | Detail |
|---|---|
| Announced | October 8, 2026 |
| Parties | GF (manufacturer) ← TSMC (customer) |
| Product | Silicon interposers for CoWoS |
| Technology | Embedded deep trench capacitors (DTC) — steady power close to the chips |
| Site | GF Malta, New York, with expansion |
| Size and term | $2 billion; initial five years + extension options |
| Volume production | First half of 2028 |
| Market reaction | GF shares up as much as 7% intraday |
The contract includes a framework to add capacity as demand grows and is built to support several generations of AI accelerators. What an interposer is, and why it became a bottleneck, is explained in "What a silicon interposer is."
2. Why now — the US packaging map fills in only in 2028–2029
| Company | US packaging role | Expected start |
|---|---|---|
| GF Malta | Interposer manufacturing | H1 2028 |
| Amkor (Arizona) | CoWoS-compatible packaging under contract with TSMC | 2028 |
| TSMC Arizona | Own advanced packaging plants (under construction) | 2029 |
| Intel Foundry | CoWoS-class packaging that can also take TSMC chips | Operating — but designs must target Intel's flow |
TSMC began producing Nvidia Blackwell GPUs in Arizona in 2025, but the finished silicon had to travel to Taiwan and back. The Register noted that advanced packaging has become a major bottleneck for US chipmaking. With AI demand outstripping packaging capacity, TSMC is spreading work to outside firms such as Amkor and GF. Amkor raised its Arizona packaging investment to $12 billion in September.
3. What it means for HBM makers
| Link | Detail |
|---|---|
| HBM | HBM from SK hynix, Samsung and Micron sits next to the GPU on the interposer |
| Bottleneck | However much HBM is made, finished AI chips cannot ship without enough CoWoS capacity |
| US production | More US packaging means more routes for HBM into US-built AI chips |
| Alternative | Small silicon bridges instead of a full interposer are also competing |
South Korea's memory makers are directly exposed: their HBM ends up on exactly this layer. Samsung's record third-quarter operating profit was driven by the same AI memory demand.
4. What remains and what is unconfirmed
- Volumes and customers: Annual output and end customers were not disclosed.
- Assembly scope: Whether full CoWoS packages will be assembled in Malta is unconfirmed; only interposer manufacturing is.
- The gap until 2028: For two years before volume production, US-made AI chips will still go through Taiwanese packaging.
- The relationship: GF and TSMC compete in foundry; whether cooperation spreads beyond packaging is unknown.
Sources
- The Register — TSMC taps GlobalFoundries to bolster US silicon interposer production in $2B deal
- Converge Digest — GlobalFoundries signs $2B TSMC deal for CoWoS interposer manufacturing
- DIGITIMES — GlobalFoundries wins US$2 billion TSMC interposer deal, closing a US packaging gap
- DCD — GlobalFoundries signs $2bn, five-year deal with TSMC for production of advanced packaging components
- Crypto Briefing — GlobalFoundries shares climb as much as 7% on $2 billion TSMC interposer deal