AMD is returning to GlobalFoundries for Co-Packaged Optics (CPO) technology in its upcoming Instinct MI500 AI accelerators. This collaboration marks a significant shift for AMD, which sold its manufacturing arm to GlobalFoundries in 2008 and completely divested in 2012. The CPO technology aims to overcome the limitations of traditional copper-based wiring by using light for faster data transfer between nodes and facilities.

GlobalFoundries will handle the Photonics Integrated Circuit (PIC) manufacturing, while ASE will manage the packaging to complete the CPO design. This partnership leverages both companies' strengths to deliver optimal solutions for AMD's next-generation AI accelerators. The Instinct MI500 series is scheduled for release in 2027, following this year's Instinct MI400 series that focuses on AI and HPC workloads.

The move comes as AMD seeks to enhance performance through CPO technology, which promises lower power consumption and significantly higher bandwidth compared to traditional copper data transfers. NVIDIA is also pursuing similar CPO systems for its upcoming "Vera Rubin" architecture, particularly the "Rubin Ultra" variant. This renewed collaboration between AMD and GlobalFoundries highlights the growing importance of advanced interconnect technologies in the competitive AI accelerator market.