GlobalFoundries’ Growth Makes the Case for a U.S. Photonics Buildout

GlobalFoundries’ CEO Tim Breen said rising optical networking demand and federal support are accelerating investment in silicon photonics and advanced packaging.

By Pat Brans, EE Times | August 6, 2026

GlobalFoundries’ second-quarter results strengthened the commercial case behind its latest U.S. government-backed investment in silicon photonics.

The foundry reported revenue of $1.786 billion for the quarter, up 6% year over year, while non-IFRS gross margin reached 29.9%, an increase of nearly five percentage points from the prior-year period. The standout performance came from communications infrastructure and data center, where revenue rose 62% year over year and 20% sequentially. GlobalFoundries now expects that segment to grow between 50% and 60% for the full year, up from its previous forecast in the high 30% range.

The results put the company’s recently announced letter of intent with the U.S. Department of Commerce in a different light. The proposed $300 million award is not aimed at creating a market from scratch. It’s intended to accelerate development in an area where demand is already rising quickly, customers are asking for more capacity, and GlobalFoundries is expanding both its technology roadmap and its manufacturing footprint.

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