January 22, 2025 /SemiMedia/ — GlobalFoundries (GF) announced plans to invest $575 million in its wafer fabrication facility in Malta, New York, to build an advanced packaging and testing plant aimed at meeting the growing demand for domestically produced silicon wafers. The expansion will also include the assembly and testing of silicon photonics technology, which integrates optical and electronic components to offer higher efficiency and performance compared to traditional silicon and copper-based chips.

The company expects the expansion project to incur $186 million in research and development costs over the next decade. New York State will provide up to $20 million in funding, adding to the $550 million it has already invested in supporting GlobalFoundries. Additionally, the U.S. Department of Commerce will offer $75 million in direct funding, supplementing the $1.5 billion allocated under the CHIPS and Science Act.

GlobalFoundries CEO Thomas Caulfield said, “This collaboration demonstrates our commitment to driving supply chain diversification in the semiconductor industry, especially in response to growing demand for silicon photonics and advanced packaging solutions. The new center in New York will not only support the state’s semiconductor manufacturing growth but also introduce innovative directions for the industry.”

Establishing domestic advanced packaging facilities is critical to achieving silicon wafer independence in the U.S. Currently, most of these operations are based in Asia. For example, TSMC’s Arizona plant produces 4nm chips but still requires them to be sent to Amkor in Taiwan for packaging.

GlobalFoundries’ new facility in New York will ensure that the entire production process remains within the U.S., enhancing chip security and reinforcing its position as a key supplier for the U.S. Department of Defense.