Marvell Tech, GlobalFoundries Expand US Chip Deal

GlobalFoundries Inc. and Marvell Technology Inc. are expanding their manufacturing partnership to increase production capacity for chips used in AI data centers. The multi-year agreement will enhance manufacturing at GlobalFoundries' Burlington, Vermont facility to meet Marvell's growing requirements, addressing the rising demand for high-speed data connections. GlobalFoundries' CEO Tim Breen noted that the shift towards optical networking in AI data centers is still in the early stages, with the company raising its growth outlook for communications infrastructure and data centers to 50%-60% by 2026. Following the announcement, GlobalFoundries shares rose 5.79% to $45.52, while Marvell shares increased by 4.34% to $239.68 in premarket trading.