U.S. Government Invests $300M in GlobalFoundries for Silicon Photonics Stake
AI-generated image · US National Wire
As Intel's RAMP-C program concludes, the U.S. government secures an equity stake in GlobalFoundries to bolster domestic semiconductor capabilities.
The Register reports that GlobalFoundries has received a letter of intent from the U.S. government for $300 million in CHIPS Act funding. Alongside the investment, the government will receive a one percent stake in the company, valued at approximately $269 million.
While Commerce Secretary Howard Lutnick framed the move as a way to accelerate innovation and domestic capabilities, the funding is specifically targeted at silicon photonics networking technologies essential for AI datacenters. GlobalFoundries intends to use the capital to develop novel optical materials, 3D hybrid bonding packaging, and its Silicon Photonics Co-Packaged Advanced Light Engine (SCALE) to support 400 Gb/s per lane connectivity.
The announcement comes as Intel recently wrapped up its Rapid Assured Microelectronics Prototypes - Commercial (RAMP-C) program, a DoD-sponsored initiative that used Intel's 18A process technology for test chips. Intel is now shifting its manufacturing focus toward the Secure Enclave program to serve the U.S. defense industrial base.
GlobalFoundries is not the first firm to trade equity for federal support. The Register notes that last summer, the Commerce Department converted $5.7 billion in CHIPS Act grants and $3.2 billion from the Secure Enclave program into a roughly 10 percent stake in Intel.