GlobalFoundries will receive $300 million from the CHIPS Act fund to advance next-generation silicon photonics technologies. In conjunction with this, the U.S. Government will acquire approximately a 1% equity stake in the company. This funding aims to bolster the development of silicon photonics and advanced packaging, including near-packaged optics (NPO), co-packaged optics (CPO), 3D hybrid bonding, and novel material development.

GlobalFoundries plans to invest these research and development funds in its manufacturing facilities located in Malta, New York, and Burlington, Vermont. This initiative underscores the company's commitment to developing manufacturing capabilities within the United States. The company recently introduced its SCALE platform, designed for efficient 400 Gb/s package transfers.

Several technology companies, including AMD, NVIDIA, and Microsoft, have expressed support for this development. They highlighted the benefits of silicon photonics for high-speed data transfer and the importance of onshoring U.S.-based technology to strengthen the supply chain.