Inside GlobalFoundries’ High-Stakes Chiplet Gamble

US foundry expands into photonics, optics and power as packaging and integration gain weight in chip design

12 Jan 2026

GlobalFoundries is expanding beyond traditional chip manufacturing into photonics, optical links and power technologies, signalling a strategic shift as chiplet-based designs move closer to commercial deployment.

The US chipmaker said a series of acquisitions and licensing deals, due to take effect from late 2025, reflect a view that future gains in performance will depend less on shrinking transistors and more on how chips are connected, powered and packaged.

Chiplets are modular components that can be combined inside a single package to form a complete system. The approach promises lower costs and faster design cycles, but it places new demands on advanced packaging, data movement and power delivery. Industry adoption is still at an early stage and depends on customer qualification and system-level integration.

As part of the push, GlobalFoundries has agreed to acquire Advanced Micro Foundry, a specialist in silicon photonics. Photonics uses light rather than electrical signals to move data, allowing faster transfer with lower energy use. This is becoming more important as artificial intelligence and data centre workloads place growing strain on data movement inside and between chips.

The company has also bought InfiniLink, which develops high-speed optical links designed for short distances between closely packed chips. Analysts say such links could become more important as electrical connections approach physical and energy limits in dense packages.

In addition, GlobalFoundries has signed a technology licensing agreement with TSMC covering gallium nitride power devices. Gallium nitride allows more efficient and cooler power delivery, which can improve reliability and operating costs in complex systems.

“These investments show a clear understanding that the future is about systems, not just chips,” said one semiconductor industry analyst, pointing to packaging, power and connectivity as key areas of competition.

The strategy also fits with US policy efforts to strengthen domestic semiconductor supply chains, including advanced packaging. Customers are increasingly seeking advanced capabilities closer to home, while government support has focused on reducing reliance on overseas suppliers.

Challenges remain, including integration complexity and strong competition from Asian manufacturers. Still, the company’s moves suggest a clear bet that in the next phase of the industry, how chips work together will matter as much as how they are made.