GlobalFoundries and Marvell Expand Optical Connectivity Partnership for AI Data Centers

GlobalFoundries and Marvell Technology are widening their partnership on optical connectivity, a move that underscores the semiconductor industry's urgency to address one of AI's most significant infrastructure challenges: rapidly transferring data between chips without excessive power consumption.

The two companies have been collaborating on silicon photonics since at least 2022, when GlobalFoundries first showcased Marvell's integration of its silicon-germanium (SiGe) technology into optical components. The expanded collaboration targets next-generation optical interconnects specifically designed for AI-centric data centers, where traditional copper links are increasingly becoming a bottleneck.

Advancements in Optical Technology

Both GlobalFoundries and Marvell are focusing on achieving 400G-per-lane optics with power consumption below 5 picojoules per bit, a significant improvement over current architectures. GlobalFoundries has been developing its SCALE silicon photonics platform, which emphasizes co-packaged optics (CPO). This technology places optical components directly alongside the processor die, reducing the distance data must travel before converting from electrical to optical signals, thereby minimizing latency and power waste.

Marvell's Strategic Moves

In 2019, Marvell acquired Avera Semiconductor for $650 million to enhance its custom ASIC capabilities. More recently, in December 2025, Marvell made a substantial investment by acquiring Celestial AI for approximately $3.25 billion, aimed at expanding its optical interconnect portfolio. The company projects revenues of around $12 billion for fiscal year 2027 and approximately $18 billion for fiscal year 2028, with data-center interconnect growth exceeding 70% year-over-year as a primary driver of these figures.

Government Support and Industry Positioning

GlobalFoundries has signed a letter of intent for a $300 million grant from the US Department of Commerce, designated for research and development in advanced semiconductor technologies, including silicon photonics. Unlike TSMC, which focuses on cutting-edge transistor density, GlobalFoundries has carved out a niche strategy around differentiated technologies like SiGe, RF, and silicon photonics, which are increasingly vital for the analog and mixed-signal components required for optical interconnects.