GlobalFoundries expects its silicon photonics business to reach an annualized revenue pace of approximately $1 billion as 2027 closes, a year earlier than previously expected amid stronger optical-networking demand.
The chipmaker forecasts $500 million in silicon photonics revenue for 2026. Its 2027 goal describes the rate at which revenue would be running at year-end, rather than sales earned throughout that year. GlobalFoundries says its production capacity is booked through 2027 and bookings for 2028 are increasing.
To expand capacity, the company plans about $4 billion in net capital spending in 2027. It expects customer prepayments to support roughly one-third of that spending.
GlobalFoundries and the U.S. government have agreed to amend an existing $955 million CHIPS and Science Act award. The revised award covers silicon photonics, silicon germanium and advanced packaging projects at the company’s Malta site in New York and its Burlington site in Vermont. GlobalFoundries expects about 80% of the reallocated award to go toward capital spending, with most of that portion expected to offset 2027 outlays.
The award change is part of a broader manufacturing arrangement described in earlier EconoTimes coverage of the Malta fab. GlobalFoundries expects discussions on additional customer prepayment agreements to conclude in late 2026 or early 2027.
