GlobalFoundries and Marvell Expand SiGe Semiconductor Agreement

GlobalFoundries and Marvell Technology expanded a multi-year agreement to increase production capacity for silicon germanium (SiGe) semiconductors. These chips enable high-speed optical connections for AI data centers, addressing the need for faster and more energy-efficient connectivity as data volumes rise.

The expanded manufacturing will occur at a GlobalFoundries facility in Burlington, Vermont. The agreement supports Marvell's demand for advanced optical networking products, specifically co-packaged optics, near-packaged optics, and pluggable optical transceivers.

Following the announcement on Thursday, investors responded positively. GlobalFoundries shares rose approximately 4%, while Marvell shares increased by 6.3% in morning trading.