[News] Major Foundries Invest USD 575 million in Capacity Expansion

---

---

Recently, leading foundries GlobalFoundries and TSMC have both ramped up efforts in advanced packaging, while the U.S. Department of Commerce has increased subsidies for advanced packaging technologies.

GlobalFoundries Invests $575 million in Advanced Packaging and Photonics Center

On January 17, GlobalFoundries announced plans to build an advanced packaging and photonics center at its Malta, New York wafer facility.

The expansion will focus on silicon photonics assembly and testing, which combines optical and electrical components. Compared to chips that rely solely on silicon and copper, this integration offers improved efficiency and performance.

The new center will also provide advanced packaging, assembly, and testing for differentiated silicon photonics platforms, integrating optical and electronic components onto a single chip for significant power and performance benefits.

The center will employ cutting-edge platforms such as 12LP+, 22FDX, and others to support advanced packaging, wafer-to-wafer bonding, and 3D and heterogeneous integration chip assembly and testing.

Public records reveal that the total investment in the facility is estimated at $575 million, with an additional $186 million in R&D costs expected over the next decade.

The New York State government will contribute $20 million to support the project. Previous funding under the CHIPS Act, including a $1.5 billion direct grant and $1.6 billion in loans from the U.S. Department of Commerce, will also support this initiative.

TSMC Expands Advanced Packaging Capacity, Plans Two New CoWoS Plants

TSMC plans to build two additional CoWoS (Chip on Wafer on Substrate) plants in the Tainan Science Park Phase III to meet the growing demand for advanced packaging capacity. The estimated investment for these new facilities exceeds NT$200 billion.

Including the CoWoS facility currently under construction in the Zhunan Science Park, TSMC is expected to expand to a total of eight CoWoS plants in the short term, with at least six located in the Tainan Science Park.

U.S. Department of Commerce Increases Advanced Packaging Subsidies

On January 17, the U.S. Department of Commerce announced significant initiatives under the CHIPS Act’s National Advanced Packaging Manufacturing Program (NAPMP), allocating $1.4 billion in incentives to bolster advanced packaging manufacturing capabilities in the United States.

As part of the program, the Department of Commerce will provide $300 million in funding to Absolics, Applied Materials, and Arizona State University for advanced substrate and materials research.

Additionally, the Department announced $1.1 billion in funding for NatCast to operate advanced packaging capabilities at the Chips for Americans NSTC prototype manufacturing facility and NAPMP advanced packaging pilot facility (PPF).

(Photo credit: GlobalFoundries)