Core Insights - GlobalFoundries has announced the acquisition of Advanced Micro Foundry in Singapore, marking a significant step in its innovation strategy and leadership in silicon photonics [1] - The acquisition will enable GlobalFoundries to integrate manufacturing assets, intellectual property, and expertise from Advanced Micro Foundry, enhancing its silicon photonics technology portfolio and production capabilities in Singapore [1] - Following the acquisition, GlobalFoundries will become the largest pure-play silicon photonics chip foundry globally based on revenue [1] Industry Context - The driving force behind this acquisition is the urgent demand for data transmission efficiency in artificial intelligence infrastructure, as the computational power required is growing exponentially [2] - AI workloads are increasing computational demands by four to five times annually, while data transmission efficiency has not kept pace, leading to significant idle time for high-end accelerators in data centers [2] Technology Overview - Silicon photonics technology, which uses lasers instead of electronic signals for data transmission, is seen as a solution to high energy consumption and signal delay issues [3] - This technology can achieve data transfer speeds that are 100 times faster than traditional methods, making it a key component for next-generation semiconductor technology [3] Company Strategy - Advanced Micro Foundry has over 15 years of process accumulation in silicon photonics, with a focus on specialized processes and significant patents [4] - GlobalFoundries plans to leverage its large-scale manufacturing experience to transition these technologies from a 200mm platform to a 300mm platform, which is crucial for the future of co-packaged optics (CPO) technology [4] Competitive Landscape - GlobalFoundries, established in 2009, has shifted its focus from advanced processes to mature processes and specialty technologies, including silicon photonics [5] - As of Q2 2023, GlobalFoundries holds a 3.9% market share, ranking fifth among global foundries, while TSMC leads with a 70.2% share [5] - The silicon photonics foundry market is becoming competitive, with major players like TSMC and Intel also investing in this technology [5] Growth Plans - GlobalFoundries launched its Fotonix silicon photonics platform in March 2022, integrating 300mm photonic characteristics with RF-CMOS technology [6] - The company aims to expand its production capacity, targeting a total output of 2 million 12-inch wafers by 2024, with plans to increase this to 3 million [6] - An investment of €1.1 billion is planned to expand its facility in Dresden, Germany, with expectations to boost annual production capacity to over 1 million wafers by the end of 2028 [6]