GlobalFoundries, Marvell expand chip capacity deal for AI data center connectivity

Sept 17 (Reuters) - GlobalFoundries ‌and ​Marvell ​Technology have expanded their agreement to increase production capacity for a ‌type of semiconductor used in high-speed ⁠optical connections in data centers.

Shares of GlobalFoundries ‌rose around 4% in ‌morning trading on Thursday, while Marvell was up 6.3%.

Here are some details:

• The ​multi-year agreement will increase capacity for GlobalFoundries' silicon germanium (SiGe) technology, which enables ⁠faster and more energy-efficient semiconductor devices, at its facility ​in Burlington, Vermont.

• The rapid growth of AI data centers is ​driving demand for SiGe ‌technology used in optical networking, as higher data volumes require ⁠faster optical connections.

• "Our expanded collaboration with GF will help ensure we have the SiGe ⁠technology and manufacturing capacity to support the significant ​growth we see ahead," said Robb Johnson, Vice President, Foundry Technology at Marvell.

• The companies said ‌the increased manufacturing capacity would help Marvell meet its demand ‌for advanced optical networking products such ⁠as pluggable optical ‌transceivers, near-packaged optics ​and co-packaged optics.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Shilpi ‌Majumdar)

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