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Mubadala's GlobalFoundries will make interposers for TSMC in New York
The News
On October 8, 2026, GlobalFoundries announced a manufacturing agreement with TSMC to supply silicon interposers, the base that holds chips and high-bandwidth memory in TSMC's CoWoS packaging, from its Malta, New York fab. GF's release calls it a $2 billion agreement with an initial five-year term. Volume production is expected to begin ramping in the first half of 2028.
Chandni Melwani
Founder & Editor
Oct 8, 2026 · 1 MIN READ
Know More
- — Owner: Mubadala beneficially owned 72.82% of GF's ordinary shares as of June 30, 2026, per Mubadala's Schedule 13G/A.
- — The $2 billion: stated only in the release's subheadline, which does not say what the figure measures.
- — Not in GF's release: wafer volumes, capacity figures, or any comment from TSMC.
GlobalFoundries was founded in 2009, when a wholly owned Mubadala subsidiary acquired AMD’s manufacturing operations in Dresden, Germany, and AMD’s fab project site in Malta, New York. Seventeen years later, on October 8, 2026, GF announced that the Malta site would make silicon interposers for the CoWoS packaging of Taiwan’s TSMC.
GF expects to establish the first US-based source of silicon interposers supporting advanced packaging technologies, and says the extra Malta capacity will serve “multiple product generations.” Ed Kaste, GF’s senior vice president of CMOS Business, said in the release that advanced packaging “is becoming increasingly critical to delivering the performance, power efficiency and scale required for next-generation AI systems.” He said GF is creating “a secure, scalable source of essential advanced-packaging elements.”
Mubadala describes itself as a sovereign investor whose shareholder is the Government of Abu Dhabi. With G42, it is a founding partner of MGX, an Abu Dhabi technology investment company. GF’s release does not mention Mubadala.
The Read
GF ties the deal to growing AI and high-performance computing demand and pitches a 'trusted U.S. manufacturing footprint'. The deal has a company majority-owned by Abu Dhabi's sovereign investor working for TSMC. GF calls the agreement a foundation to expand capacity as customer demand grows, so Malta will likely add capacity after the 2028 ramp if demand holds.
Room for Disagreement
GF's release does not say what the expansion framework obliges either company to do. Its own cautionary statement warns that the expected benefits of GF's announced partnerships may fail to materialise, so Malta's capacity could stay where the initial deal leaves it.
Related
Frequently Asked Questions
What does a silicon interposer do?
TSMC calls CoWoS its 'chip-last on interposer' process, designed for both heterogeneous and homogeneous integration, which means combining different chips, or copies of the same chip, in one package. TSMC says it will increase interposer sizes 'to accommodate more advanced nodes and high-bandwidth memories (HBMs) to achieve greater compute power and bandwidth.'
How much control does Mubadala have over GlobalFoundries?
GF's 2025 Form 20-F says Mubadala has significant influence over GF's management and affairs, and the ability to control the outcome of matters submitted to shareholders, including the election of directors and significant corporate transactions. A shareholder's agreement also gives Mubadala certain consent rights and director nomination rights that depend on how much of GF it owns. The filing says Mubadala's interests may not always coincide with, and in some cases may conflict with, those of GF and its other shareholders.
Has GF's Malta site received US government support?
Yes. In November 2024 GF entered into a direct funding agreement with the US Department of Commerce for up to $1.5 billion in planned CHIPS Act funding for projects in Malta, New York, and Burlington, Vermont, paid as GF meets milestones, and GF says it received funding in 2025 for the first two milestones of its Fab 8 expansion. In January 2025, an additional $75 million of proposed funding was added to support GF's plans for a new centre for advanced packaging and testing of essential chips at its Fab 8 facility in Malta. In 2025 GF also signed an agreement with New York State to secure $570 million for the Fab 8 projects, which likewise sets milestones GF must meet to receive the funds. GF says the federal agreement restricts certain change-of-control transactions. Its interposer release does not say whether any of this funding covers the TSMC work.
Sources
- GlobalFoundries press release, 'GlobalFoundries reaches agreement to establish U.S.-based supply of silicon interposers for advanced AI packaging,' October 8, 2026. Primary source for the agreement with TSMC, the $2 billion (stated in the subheadline only), the initial five-year term, the first-half-2028 ramp, the 'first U.S.-based source' expectation, Ed Kaste's quotes and the cautionary statement.
- GlobalFoundries Inc., 2025 Annual Report on Form 20-F. GF's founding in 2009 through a wholly-owned Mubadala subsidiary, Mubadala's influence and rights under the shareholder's agreement, and the CHIPS Act and New York State funding agreements for Fab 8 in Malta. Its ownership figures are as of December 31, 2025 and are superseded by the Schedule 13G/A below.
- Mubadala Investment Company PJSC, Schedule 13G/A on GlobalFoundries Inc., signed August 10, 2026. Beneficial ownership of 399,573,756 GF ordinary shares, 72.82% of the class, as of June 30, 2026, based on 548,700,833 shares outstanding as of June 1, 2026.
- TSMC, HPC Platform technology page. TSMC's description of CoWoS as its 'chip-last on interposer' process and its plan to increase interposer sizes to accommodate more advanced nodes and high-bandwidth memories.
- Mubadala, About Mubadala. Mubadala's description of itself as a sovereign investor whose shareholder is the Government of Abu Dhabi.
- Mubadala, 'The Artificial Intelligence and Advanced Technology Council Announces MGX, a Technology Investment Vehicle with Mubadala and G42 as Founding Partners,' 11 March 2024. MGX described as a technology investment company, with Mubadala and G42 as foundational partners.
Chandni Melwani
Chandni Melwani is the founder and editor of New in AI, covering AI agents, M&A, and enterprise adoption. She holds a Master's in Management of Artificial Intelligence from Queen's University and brings a practitioner's perspective from her work in Data and AI leadership.
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