GlobalFoundries Accelerates Silicon Photonics and GaN Capabilities Amid Strategic Partnerships
GlobalFoundries Inc. (NASDAQ: GFS) has announced a series of moves that underscore its ambition to cement a leadership role in next‑generation semiconductor technologies. In a sequence of acquisitions and partnerships that unfolded over the past two days, the company has secured a foothold in silicon photonics, expanded its gallium nitride (GaN) portfolio, and forged collaborations that span from data centers to space‑grade electronics.
Acquisition of Advanced Micro Foundry (AMF)
On November 18 and 19, GlobalFoundries announced the purchase of Singapore‑based Advanced Micro Foundry (AMF), a specialist in silicon photonics solutions. The transaction, which has been reported by a broad array of industry outlets—from Semiconductor Today to ComputerBase—is aimed at bolstering GlobalFoundries’ capacity to deliver high‑bandwidth optical interconnects for artificial‑intelligence (AI) data centers. While the company did not disclose the financial terms, the deal represents a strategic leap into a market where demand is driven by the need for faster, lower‑latency data pathways in cloud and edge computing environments.
Silicon photonics technology allows light pulses to carry data across silicon chips, offering significant advantages over traditional copper wiring, such as reduced power consumption and higher data rates. By acquiring AMF, GlobalFoundries gains access to a mature silicon photonics platform, enabling it to offer integrated photonic‑electronic solutions to its existing portfolio of mobility, automotive, and IoT customers. The acquisition also positions the company to meet the growing expectations of AI infrastructure providers, who require seamless, high‑throughput connections between processors, memory, and storage.
Expansion of GaN Technology Through Partnerships
Shortly after the AMF deal, GlobalFoundries announced a partnership with Navitas Semiconductor. The collaboration is focused on accelerating U.S.‑based GaN technology for AI data centers and critical power applications. The partnership, disclosed on November 20 by GlobeNewswire, is a long‑term initiative that seeks to deepen the supply chain for GaN devices—known for their high efficiency and high‑power density—within the United States. Navitas, which specializes in GaN process development and manufacturing, will provide complementary expertise that could shorten time‑to‑market for next‑generation power electronics.
The same day, GlobalFoundries also revealed a collaboration with BAE Systems to deliver radiation‑hardened FinFET technology for space applications. According to a GlobeNewswire release, BAE Systems will apply its radiation‑hardening processes to GlobalFoundries’ FinFET chips, which are manufactured securely in U.S. facilities. This partnership highlights the company’s willingness to diversify its customer base beyond conventional data‑center markets and into the aerospace domain, where stringent reliability and environmental tolerances are paramount.
Market Context and Financial Snapshot
GlobalFoundries’ stock closed at $32.94 on November 18, 2025, well below the 52‑week low of $29.77 and far from the 52‑week high of $47.69. The company’s market capitalization sits at approximately $18.25 billion. Its price‑to‑earnings ratio, calculated at -415.94, reflects an earnings negative that is characteristic of a capital‑intensive semiconductor manufacturer investing heavily in R&D and capacity expansion.
Despite the negative valuation metrics, the series of strategic moves suggests a focus on long‑term growth. By acquiring AMF’s silicon photonics capabilities, partnering with Navitas for GaN, and aligning with BAE Systems for space‑grade FinFETs, GlobalFoundries is positioning itself as a versatile partner capable of serving a wide spectrum of high‑performance computing and mission‑critical markets.
Strategic Implications
Silicon Photonics Integration: The AMF acquisition will enable GlobalFoundries to offer integrated photonic‑electronic solutions, potentially capturing a larger share of the AI data‑center market where optical interconnects are becoming standard.
Domestic GaN Supply Chain: The Navitas partnership strengthens the U.S. GaN ecosystem, aligning with national security priorities that favor domestically produced high‑performance power devices.
Space‑Grade Semiconductor Expansion: Collaboration with BAE Systems opens a niche market in aerospace, where the demand for radiation‑hardened, high‑density logic is projected to grow as space exploration and satellite constellations expand.
Risk Management: By diversifying its technology portfolio and customer base, GlobalFoundries mitigates concentration risk in any single market segment and positions itself to capitalize on emerging trends in AI, edge computing, and space technology.
In summary, GlobalFoundries’ recent acquisitions and partnerships reflect a concerted effort to strengthen its competitive edge across multiple high‑growth sectors. While the company’s financial metrics currently signal an investment‑heavy posture, the strategic acquisitions signal a forward‑looking strategy that could yield significant upside as the demand for silicon photonics, GaN power devices, and space‑grade semiconductors continues to rise.
