GlobalFoundries and Marvell expand chip capacity for AI networking

GlobalFoundries and Marvell Technology have entered into a multi-year agreement to expand the production capacity of silicon germanium (SiGe) technology at GlobalFoundries’ manufacturing facility in Burlington, Vermont.

The expansion aims to meet the rising demand for advanced optical networking components required by artificial intelligence infrastructure. As AI systems increase the volume of data transferred between processors and memory, data centers are shifting from copper to optical networking to maintain high speeds and energy efficiency. The SiGe technology produced under this partnership will support Marvell’s optical networking products, including pluggable optical transceivers, near-packaged optics, and co-packaged optics.

Following the announcement, GlobalFoundries shares rose approximately 4%, while Marvell shares increased by 6.3%. The collaboration is designed to address the growing need for high-speed, energy-efficient connections that can manage the massive data throughput required by modern AI computing environments.