HardwareJul 29, 2026, 10:37 AM

US to award GlobalFoundries $300 million to develop faster AI chip links - Reuters

30-second summary

The U.S. government will provide GlobalFoundries with $300 million to develop higher‑speed interconnects for AI chips, aiming to boost domestic AI hardware capabilities.

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Key takeaways
  • The U.S. government is granting $300 million to GlobalFoundries for AI chip interconnect development.
  • Faster links will improve data transfer rates, benefiting large AI models and reducing latency.
  • The funding supports broader U.S. strategies to secure domestic semiconductor capabilities.
  • GlobalFoundries will focus on advanced packaging and 2‑nm process technologies.
Full story

The United States Department of Commerce announced a $300 million award to semiconductor manufacturer GlobalFoundries to create faster interconnects that link AI accelerators. The funding is part of a broader effort to strengthen domestic AI hardware supply chains.

Accelerated interconnects are critical as large language models and generative AI workloads demand rapid data movement between chips. By improving link speeds, the initiative seeks to reduce latency and power consumption, keeping U.S. AI development competitive.

GlobalFoundries, a leading foundry with existing partnerships in AI, will use the money to advance its 2‑nanometer process and develop new packaging technologies that enable higher bandwidth connections.

The award aligns with recent U.S. policy pushes, such as the CHIPS and Science Act, which aim to secure semiconductor manufacturing and reduce reliance on foreign suppliers.

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Why this matters
Developers

Reduced inter‑chip latency enables more efficient model training and inference.

Businesses

Higher‑speed AI hardware can lower operating costs and improve product performance.

Investors

Government backing signals confidence in domestic AI chip ecosystems.

Students

New research opportunities in high‑performance semiconductor design.

Everyone

Strengthening U.S. chip supply chains enhances national technology leadership.

Glossary
interconnects
High‑speed links that connect multiple AI chips to enable rapid data exchange.
Sources · 1
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