GlobalFoundries, Marvell Expand Chip Capacity Deal for AI Data Center Connectivity

Global Foundries, Marvell expand manufacturing tie-up to boost capacity for AI cloud computing connections Global Foundries and Marvell Technology are broadening their manufacturing collaboration to boost capacity for semiconductor technology used in high-speed optical connections for AI and cloud data centers. Under the expanded multi-year pact, Global Foundries will expand capacity for its silicon germanium, or SiGe, technology at its facility in Burlington, Vt., to support high-frequency performance, signal integrity and power efficiency in advanced optical networking use cases. The additional capacity will meet Marvell's growing demand for optical networking products, including pluggable optical transceivers, Near-Packaged Optics and Co-Packaged Optics.

As larger quantities of data flow between processors, switches and other infrastructure in high-powered AI data centers, the need for faster connections that can quickly transfer information and reduce power consumption continues to grow.

The companies say the expanded collaboration is designed to help Marvell satisfy the increased demand for integrated optical components as data-center architectures shift toward higher-bandwidth optical connections. It also follows more than a decade of cooperation between the two companies. Global Foundries said its SiGe technology already delivers support for optical connectivity at 200 gigabits per lane, with a roadmap optimized for future generations of higher-performance demands from AI and cloud data-center users. Marvell has been growing its footprint in AI infrastructure, with optical connectivity playing an increasingly pivotal role in its comprehensive data-center strategy.

In March, Nvidia said it would invest $2 billion in Marvell in a strategic partnership and collaborating with the firm on silicon photonics and advanced optical interconnect technology.

The deal also underscores the importance of manufacturing capacity for components beyond the traditional ultra-high-performance main AI processor. As data centers grow larger and larger, faster transfer connections are an important contributor to overall data-center capability. Shares of Global Foundries gained about 4% in trading in morning trading on Thursday, while Marvell gained about 6.3% in early morning trading, according to Reuters.

The companies did not reveal financial terms of the expanded capacity agreement, but the deal demonstrates how the growth of AI infrastructure is driving demand across the semiconductor supply chain, from the processors to the optical components that connect them.