GlobalFoundries and Marvell Technology are expanding their manufacturing partnership as demand increases for semiconductor technology used to connect increasingly data-intensive artificial intelligence infrastructure.
Under the expanded agreement, the companies will boost production capacity for silicon germanium, known as SiGe, at GlobalFoundries’ facility in Burlington, Vermont.
SiGe technology is used to produce semiconductor devices capable of operating at high speeds while maintaining energy efficiency. It has become increasingly important for optical networking, as data centers need faster connections to manage rising volumes of information.
The companies said the expanded agreement will support demand for Marvell’s advanced optical networking products, including pluggable optical transceivers, near-packaged optics and co-packaged optics.
Shares of both companies moved higher following the announcement. GlobalFoundries stock climbed about 4% in morning trading Thursday, while Marvell shares increased 6.3%.
The agreement highlights the growing infrastructure demands associated with artificial intelligence. As AI systems require greater computing power, data centers must transfer larger quantities of information among processors, memory and other components.
Optical networking enables that information to be transmitted at high speeds, creating greater demand for specialized semiconductor technology capable of supporting those connections.
Robb Johnson, Marvell’s vice president of Foundry Technology, said the expanded collaboration would help the company obtain the SiGe technology and manufacturing capacity necessary to meet anticipated increases in demand.
For GlobalFoundries, the deal further expands the role of its Vermont manufacturing facility in supplying technology for advanced data-center connectivity.
The companies characterized the arrangement as a multi-year expansion rather than a temporary increase in production. The capacity commitment is intended to address sustained demand for optical networking products as investment in AI data centers continues to develop.
The semiconductor industry has been increasingly influenced by the rapid construction and expansion of AI data centers. Although advanced processors and memory have received much of the attention, the infrastructure linking those components is also becoming an important part of the data-center supply chain.
GlobalFoundries and Marvell’s expanded agreement focuses on that connectivity segment of the AI infrastructure market, providing technology designed to move data quickly and efficiently rather than directly process it.
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