U.S. Government to Take 1% Stake in GlobalFoundaries, Plans to Grant $300 Million Award
By Katherine Hamilton
The Commerce Department is taking a 1% stake in GlobalFoundries and plans to grant the company money to develop silicon photonics for data centers.
The semiconductor company signed a letter of intent with the government to speed up research and development on silicon photonics for data centers.
GlobalFoundries expects to get $300 million from the Commerce Department under the letter of intent, it said Wednesday.
In a separate agreement, the Commerce Department will receive equity from GlobalFoundries, representing about 1% ownership.
Shares of the company gained 3.9% to $50.93 in premarket trading.
Silicon photonics can move data at the speed of light and are an important product for high-performance-computing data centers driving the artificial-intelligence boom.
The work under the letter of intent will leverage GlobalFoundries' existing sites in Malta, N.Y., and Burlington, Vt.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
July 29, 2026 08:30 ET (12:30 GMT)
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