In a significant move to bolster its artificial intelligence (AI) technology portfolio, GlobalFoundries announced the acquisition of Singapore’s Advanced Micro Foundry, a specialist in silicon photonics.
This acquisition aligns with GlobalFoundries’ strategy to enhance its offerings in data centers, where the demand for faster, energy-efficient data transmission is rapidly increasing.
Advanced Micro Foundry is recognized for its pioneering work in silicon photonics, a cutting-edge technology that leverages light to transmit data instead of traditional electrical signals.
This innovation offers significant advantages in speed and power efficiency, making it an increasingly vital technology in the growing world of AI-driven data centers. By integrating light-based data transmission, silicon photonics dramatically improves the capacity to meet the escalating data requirements of AI applications.
Kevin Soukup, GlobalFoundries‘ senior vice president of silicon photonics, noted that the technology roadmaps of both companies are highly complementary. He emphasized that this acquisition marks GlobalFoundries’ second-largest purchase of a Singapore-based semiconductor firm, underscoring the strategic importance of the region in the company’s global operations.
Though the financial details remain undisclosed, the move echoes GlobalFoundries’ past significant investment in Singapore, recalling its 2010 acquisition of Chartered Semiconductor for US$3.9 billion.
The silicon photonics market is reported to be expanding swiftly, with GlobalFoundries witnessing a doubling of revenue in this segment since 2024. Soukup expressed confidence in sustaining this growth trajectory into 2026, reflecting a world increasingly dependent on data transmission and processing capabilities.
Over recent financial quarters, GlobalFoundries has seen its communications infrastructure and data center business emerge as its most dynamic and fastest-growing sector.
For the quarter ending September 30, 2025, revenue from communications infrastructure and data centers surged 32 percent to US$175 million. This growth has helped mitigate declines seen in other segments like smart mobile devices and home and industrial Internet of Things (IoT) sectors.
Despite a slight overall revenue dip of 3 percent year-on-year to US$1.69 billion, CEO Tim Breen reiterated strong optimism about the communication and data center divisions.
He outlined ambitions for silicon photonics to surpass a US$1 billion run rate within GlobalFoundries before 2030, signaling a bold vision for the technology’s market potential.
The acquisition will consolidate Advanced Micro Foundry’s manufacturing facilities, intellectual property portfolio, and expert workforce with GlobalFoundries’ expansive global footprint and manufacturing resources.
Soukup highlighted that this combination will position GlobalFoundries as the largest pure-play foundry in the silicon photonics space based on revenue, a substantial leap in market leadership.
As part of this strategic deal, GlobalFoundries plans to establish a specialized silicon photonics research and development (R&D) center of excellence in Singapore. Collaborating with the Agency for Science, Technology and Research, Singapore’s foremost public R&D organization, this center will serve as a hub for innovation and technological advancement in silicon photonics.
Singapore’s semiconductor sector constitutes nearly 7 percent of the country’s gross domestic product, with the government dedicating over SGD 1 billion towards semiconductor R&D initiatives.
These investments aim to capitalize on growing opportunities in the AI-driven economy, enhancing Singapore’s stature as a key regional hub for semiconductor manufacturing and innovation.
The move not only marks an expansion of its technology portfolio but also strengthens its strategic presence in Asia’s semiconductor ecosystem.
The acquisition of Advanced Micro Foundry is set to accelerate the development of high-performance, energy-efficient AI chip technologies at a time when the semiconductor industry is driven by transformative shifts towards AI, data-centric computing, and next-generation communication infrastructure.
