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GlobalFoundries Acquires Singapore’s AMF to Lead AI Data Center Innovation

Source: GlobalFoundries Buys Singapore’s AMF To Beef Up Technology Used In AI Data Centers: Stock Slips Premarket (2025-11-19)

GlobalFoundries has announced the strategic acquisition of Singapore-based Advanced Micro Foundry (AMF), a move poised to revolutionize AI data center technology through cutting-edge silicon photonics. This deal, valued at an estimated $75 million in revenue for 2026, underscores GlobalFoundries’ commitment to advancing ultra-fast, energy-efficient data transfer solutions. Despite a 23% stock decline year-to-date, the company emphasizes that this acquisition will bolster its technological leadership, expand production capacity, and accelerate R&D efforts in Singapore. Silicon photonics, a breakthrough technology that uses light to transfer data, is increasingly vital for AI and cloud computing, offering significant improvements in speed and energy efficiency. The deal aligns with global trends toward sustainable, high-performance data infrastructure, especially as AI workloads grow exponentially. Recent developments in the semiconductor industry highlight the importance of silicon photonics, with major players like Intel and Samsung investing heavily in this technology. The global market for silicon photonics is projected to reach over $10 billion by 2027, driven by AI, 5G, and high-speed data transmission needs. Furthermore, Singapore’s strategic position as a tech hub enhances GlobalFoundries’ R&D capabilities, fostering innovation in photonics and integrated circuits. The acquisition also supports Singapore’s national agenda to become a leading AI and semiconductor innovation hub, with government incentives and collaborations boosting industry growth. In addition to technological advancements, this move comes amid a broader industry shift toward sustainable manufacturing practices, with companies investing in greener fabrication processes to reduce carbon footprints. GlobalFoundries’ focus on energy-efficient photonics aligns with global efforts to combat climate change while meeting the surging demand for AI infrastructure. The company’s investment in Singapore’s R&D ecosystem is expected to create over 500 high-tech jobs, further strengthening the region’s semiconductor talent pool. This acquisition is also a strategic response to the global chip shortage, emphasizing the importance of localized, resilient supply chains. As AI applications become more pervasive—from autonomous vehicles to healthcare diagnostics—the need for high-performance, energy-efficient data centers intensifies. Silicon photonics technology is positioned as a key enabler, offering data transfer speeds that surpass traditional electronic interconnects by orders of magnitude. GlobalFoundries’ move to acquire AMF not only enhances its technological portfolio but also signals a broader industry trend toward integrating photonics into mainstream semiconductor manufacturing. This aligns with recent investments by major tech giants like Google and Amazon, who are deploying silicon photonics in their data centers to improve efficiency and reduce operational costs. The industry’s focus on innovation, sustainability, and supply chain resilience is shaping the future of AI infrastructure globally. In conclusion, GlobalFoundries’ acquisition of AMF marks a pivotal step in the evolution of AI data center technology, emphasizing the strategic importance of silicon photonics. As the semiconductor industry continues to innovate, this move positions GlobalFoundries as a key player in the next generation of high-speed, energy-efficient data transfer solutions. With the global market for silicon photonics expanding rapidly and Singapore’s growing reputation as a tech innovation hub, this deal is set to influence industry standards and accelerate the adoption of advanced AI infrastructure worldwide.

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