GlobalFoundries Acquires AMF: What This Means for AI Data Centres and Asia’s Chip Future

Singapore emerges as a strategic hub as silicon photonics gains ground in AI data centres and advanced computing.

US-based semiconductor firm GlobalFoundries has acquired Advanced Micro Foundry (AMF), a Singapore-based silicon photonics specialist. The deal marks a major step in the company’s strategy to strengthen its position in AI data centres, high-performance computing, and quantum systems—sectors increasingly dependent on faster, energy-efficient chip technology.

Although the financials were not disclosed, the acquisition is a clear signal: silicon photonics is moving from research labs to full-scale commercial deployment. With this move, GlobalFoundries aims to scale manufacturing, boost R&D in Singapore, and expand its global supply chain.

Why Silicon Photonics Matters Now

Silicon photonics integrates traditional semiconductor technology with optical networking, using light instead of electricity to transmit data. This enables significantly higher speeds and lower power consumption, making it ideal for AI-heavy data centres.

Why the Technology Is Gaining Traction

• AI workloads are increasing exponentially.
• Traditional copper-based connections are reaching physical limits.
• Data transfer speed and efficiency are now core infrastructure challenges.
• Quantum computing also relies heavily on photonic systems.
  

Industry momentum is strong:

• Nvidia is working with TSMC to integrate optical connections into its networking chips.
• Ayar Labs, Celestial AI, and Lightmatter—funded by top US investors—are pursuing similar technologies.
• Some already use GlobalFoundries as their manufacturing partner, positioning the company at the centre of the ecosystem.

Why Singapore? A Growing Semiconductor Hub

Singapore has spent over S$700 million on quantum research since 2002 and launched a S$300 million National Quantum Strategy in 2024. AMF itself spun off from A*STAR in 2017, illustrating how national-funded research is translating into commercial capabilities.

As part of the deal, GlobalFoundries will set up a research and development centre in Singapore in collaboration with A*STAR. This will focus on materials and designs for ultra-fast data transfer at 400Gbps and beyond—a requirement for next-generation AI and communications systems.

According to A*STAR, the partnership “represents a bridge from laboratory to market,” which has been a challenge for deep-tech startups across Asia.

Industry Context: Demand Is Growing Fast

In its latest earnings report, GlobalFoundries shared that revenue from communication infrastructure and data centre technologies grew 32% in Q3 2025, making it the fastest-growing segment. The company expects silicon photonics to become a US$1 billion business before 2030.

AMF CEO Jagadish CV noted that the combined capabilities will enable access to global markets:

“With complementary technology portfolios, we are proud to join forces with a trusted manufacturer with global reach, and together, look forward to advancing silicon photonics technology for a broader range of markets and customers.”

How GlobalFoundries Plans to Scale

The company aims to:

• Expand silicon photonics manufacturing in Singapore using AMF’s 200mm platform, with plans to scale to 300mm for higher volume.
• Strengthen supply chain resilience across the U.S. and Asia.
• Address demand in sectors such as:
  
  • AI data centres
  • Long-haul optical communications
  • LiDAR and sensing
  • Quantum computing
  • Automotive systems
    

GlobalFoundries’ roadmap also includes co-packaged optics—where chips and optical connections are integrated in a single package. This is seen as a next-generation design approach for AI chip architectures.

Strategic Signals for Asia

The deal aligns with broader shifts in semiconductor manufacturing:

• Asia is becoming a core region for advanced packaging, photonics, and chip-scale innovation.
• Singapore may emerge as a neutral ground between US and China tensions in semiconductor supply chains.
• For startups, especially in quantum and AI hardware, Singapore could become an investment and manufacturing landing zone.

Conclusion: A Signal of What’s Coming Next

The acquisition shows that silicon photonics is no longer just a research topic—it is entering the infrastructure layer of AI and computing. As large data centres evolve, photonic chips could become a core feature of their architecture.

For Singapore, the deal brings new momentum to its semiconductor strategy—moving beyond fabrication to next-wave technologies where speed, power efficiency, and security are critical. For GlobalFoundries, the acquisition strengthens its position not just as a chip manufacturer—but as a systems enabler for AI, telecom, and quantum computing.

The next phase will be worth watching—especially if Asia begins to shape the future of AI hardware, not just its deployment.

Quick Takeaways

• GlobalFoundries acquires AMF to boost silicon photonics capabilities.
• The deal strengthens Singapore’s position in the global AI chip supply chain.
• Silicon photonics is gaining momentum as copper-based connections reach their limit.
• GF expects the technology to become a US$1B business before 2030.
• Singapore could emerge as Asia’s hub for next-generation chip innovation.