GF's New York Advanced Packaging and Photonics Center: A Game Changer for U.S. Semiconductor Industry

In a significant move to bolster the U.S. semiconductor industry and address critical supply chain vulnerabilities, GlobalFoundries (GF) has announced the establishment of the New York Advanced Packaging and Photonics Center. This first-of-its-kind facility, supported by investments from New York State and the U.S. Department of Commerce, will enable semiconductors to be securely manufactured, processed, packaged, and tested entirely onshore, meeting the growing demand for essential chips in critical end markets.

The center, located within GF's New York manufacturing facility, will focus on silicon photonics and 3D/heterogeneously integrated chips for AI, automotive, aerospace, defense, and communications applications. By offering advanced packaging, assembly, and testing capabilities in the U.S., GF addresses the current concentration of advanced packaging in Asia, reducing supply chain vulnerabilities and enhancing geodiversity in customers' supply chains.

The New York Advanced Packaging and Photonics Center is expected to offer advanced packaging solutions for GF's silicon photonics platform, which brings together optical and electrical components on a single chip to realize power efficiencies and performance advantages. These chips are positioned to address power and performance needs in automotive, communications, radar, and other critical infrastructure applications. Additionally, the center will provide full turnkey advanced packaging, bump, assembly, and testing for aerospace and defense customers under GF's Trusted Foundry accreditation, allowing chips used in sensitive national security systems to never leave the U.S. during production.

GF's overall investment in the New York Advanced Packaging and Photonics Center is expected to be $575 million, with an additional $186 million investment in research and development over the next 10-plus years. These efforts are expected to create approximately 100 new full-time GF jobs in New York over the next five years. New York state will provide up to $20 million in new support for the new center, which is in addition to the previously announced $550 million in support for GF from the New York State Green CHIPS program. The U.S. Department of Commerce will provide up to $75 million in direct funding to support the center, supplementing the previously announced GF award under the CHIPS and Science Act.

The establishment of GF's $575 million advanced packaging facility in New York marks a strategic shift in U.S. semiconductor manufacturing capabilities. The center addresses critical supply chain vulnerabilities by bringing end-to-end chip production onshore, reducing dependence on foreign production, and enhancing national security. The integration of silicon photonics with advanced packaging capabilities positions GF to capitalize on the growing AI infrastructure market, where chip interconnect speeds and power efficiency are paramount.

In conclusion, GF's New York Advanced Packaging and Photonics Center is a game-changer for the U.S. semiconductor industry. By offering end-to-end U.S.-based solutions, capitalizing on the growing AI infrastructure market, securing defense contracts, and strengthening its competitive position, GF is well-positioned to contribute to the growth and security of the U.S. semiconductor industry. The center's strategic advantages, combined with significant investment and job creation, align with broader government initiatives to strengthen domestic semiconductor manufacturing and reduce dependence on foreign production.