GlobalFoundries buys SG semiconductor firm to expand AI portfolio

GlobalFoundries has acquired Advanced Micro Foundry, adding the Singapore-based silicon photonics foundry’s manufacturing assets, IP, and workforce to expand its capabilities in silicon photonics and AI infrastructure.

The company said the deal makes it the largest pure-play silicon photonics foundry by revenue.

GlobalFoundries plans to leverage AMF’s 200mm manufacturing platform in Singapore and scale to 300mm production as demand grows.

It will also set up a silicon photonics research center in Singapore in partnership with the Agency for Science, Technology and Research.

Terms of the deal were not disclosed.

🔗 Source: GlobalFoundries

🧠 Food for thought

Implications, context, and why it matters.

AMF photonics-only adds integration work

Advanced Micro Foundry runs a silicon photonics foundry that moves data with light while making optics for telecom and light detection and ranging (LiDAR) 1. GlobalFoundries gets a site tuned for photonics but must fold it into operations.
AMF uses silicon-on-insulator (SOI) platforms 1, and a shift from 200 mm (8-inch) to 300 mm (12-inch) wafers needs new tools plus cleanroom buildouts, so GlobalFoundries faces integration plus expansion costs before scale.
The company grew revenue 20.7% in fiscal 2024 while losses deepened as costs jumped 2. Heavy spending on capacity or research and development (R&D) drove that trend, so GlobalFoundries is buying in before profit and may see margin pressure.

Singapore photonics packaging lifts OSATs

Scaling 300 mm photonics in Singapore lifts demand for packaging, as these chips use wafer-level methods to join optics with electronics 1. Outsourced Semiconductor Assembly and Test (OSAT) providers can set up photonics lines, and Palomar Technologies, a photonics assembly equipment and services firm, expanded the Singapore Innovation Center twice 3.
OSAT activity clusters in Asia, including Singapore 4, which lets firms respond faster. Vendors of die attach, wire bonding, and vacuum reflow for photonics 3 can land GlobalFoundries deals because assembly needs precision bonding plus specialized test gear unlike standard packaging 3.
Investors should watch for OSAT photonics capex (capital expenditures) in Singapore over next 12–18 months, since these firms may win more of GlobalFoundries’ packaging as 300 mm output ramps.