UAE-backed semiconductor manufacturer GlobalFoundries has said the US government will award it $300 million to develop technology to make AI data centres faster and more efficient.
The award is part of President Donald Trump's move to direct Chips Act research funding towards semiconductor technologies, in a broader drive to strengthen the US position in the race with China.
GlobalFoundries, based Malta, New York state, said it had signed a letter of intent with the US Department of Commerce on Wednesday.
“These strategic investments will enhance our country’s domestic capabilities, create high-paying jobs and keep America at the forefront of the semiconductor industry,” Commerce Secretary Howard Lutnick said.
The Trump administration has previously committed $150 million for semiconductor manufacturing equipment and $2 billion for quantum computing.
GlobalFoundries said the award would accelerate its silicon photonics wafer technologies, novel optical materials and advanced packaging.
Silicon photonics use light instead of electrical signals to transmit information between chips, delivering greater performance and lower power consumption.
GlobalFoundries said it is looking to boost data transfer speeds to 400 gigabits per second as well as a five-times increase in energy efficiency over current-generation implementations.
In a separate agreement, the Commerce Department said it would receive equity from GlobalFoundries, representing roughly 1 per cent ownership based on Wednesday's share structure.
“With today’s compute supply chain investments, the Trump Administration is accelerating America’s innovation engine,” Mr Lutnick said.
Mubadala Investment Company owns roughly 73 per cent of GlobalFoundries after announcing in May that it had sold 22 million shares.
