GlobalFoundries gets $300 million US grant for silicon photonics

GlobalFoundries was awarded $300 million by the US government for silicon photonics research and development. As part of the agreement, the Department of Commerce is taking a 1% equity stake in the chipmaker.

Why it matters: Silicon photonics is increasingly seen as key to relieving the interconnect and power bottlenecks inside AI data centers, since optical links move data with far less energy loss than copper at scale. The government taking an equity stake, echoing its earlier approach with Intel, signals a continued shift toward direct US industrial policy in chip manufacturing rather than pure subsidy.