US Commerce Department Awards GlobalFoundries $300M for AI Photonics
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The U.S. Department of Commerce has signed a letter of intent to grant $300 million to chipmaker GlobalFoundries for advanced silicon photonics development. Announced last week, the funding targets next-generation wafer technology, optical materials and advanced packaging for AI data centers. The move comes even as the Trump administration escalates efforts to strengthen domestic semiconductor supply chains.
The Investment
The $300 million will support GlobalFoundries' SCALE platform, targeting modular designs with 400 Gb/s data-transfer rates and a fivefold energy efficiency gain over current implementations. Under a separate agreement, the Department of Commerce will receive a roughly 1% equity stake in the company. CEO Tim Breen said the shift from copper to optical connectivity is already under way as AI workloads become more demanding.
Supply Chain Strategy
The funding builds on $1.5 billion GlobalFoundries received under the CHIPS and Science Act in 2024 for manufacturing expansion in New York and Vermont. The Trump administration previously proposed a $150 million equity stake for next-generation semiconductor tech in January and committed $2 billion for quantum computing in May. Most silicon photonics supply chains remain concentrated outside the U.S., with manufacturers like Taiwan's TSMC and Israel-based Tower Semiconductor dominating.
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