GlobalFoundries and Marvell expand optical connectivity partnership for AI data centers
In brief
- GlobalFoundries and Marvell expand optical connectivity partnership targeting AI infrastructure
- 400G-per-lane optics with sub-5 picojoules-per-bit power consumption targeted by both companies
- Silicon photonics addresses copper bottleneck limiting modern data center performance
- Marvell projects data-center interconnect revenue growth exceeding 70% year-over-year
- GlobalFoundries secured $300 million US grant for advanced semiconductor R&D
The optical interconnect imperative
AI data centers are pushing the limits of traditional copper connections. Traditional copper links are increasingly becoming the weakest link in infrastructure designed to move massive volumes of data between processors and memory. Optical components offer a path forward—higher bandwidth, lower latency, and dramatically reduced power consumption compared to electrical signaling.
Both GlobalFoundries and Marvell are targeting 400G-per-lane optics with power consumption below 5 picojoules per bit. That efficiency matters. At data center scale, shaving milliwatts per connection compounds into meaningful operational cost reductions.
Silicon photonics and co-packaged optics
GlobalFoundries has been developing its SCALE silicon photonics platform, which focuses on co-packaged optics (CPO). The architecture is straightforward in concept but complex in execution: CPO places optical components directly alongside the processor die rather than connecting them via separate modules. This proximity eliminates intermediate hops, reduces signal degradation, and cuts power overhead.
Marvell's recent acquisitions underscore the strategic importance of this space. In 2019, Marvell acquired Avera Semiconductor for $650 million to bolster its custom ASIC capabilities. More recently, Marvell acquired Celestial AI in December 2025 for approximately $3.25 billion, a deal aimed at expanding its optical interconnect portfolio.
Market momentum and funding tailwinds
Marvell has projected revenue of roughly $12 billion for fiscal year 2027 and approximately $18 billion for fiscal year 2028, with data-center interconnect growth exceeding 70% year-over-year serving as the main engine behind those numbers.
GlobalFoundries signed a letter of intent for a $300 million grant from the US Department of Commerce, earmarked for research and development in advanced semiconductor technologies. That capital supports the infrastructure investments required to scale silicon photonics manufacturing.
GlobalFoundries has carved out a strategy around differentiated technologies like silicon-germanium, RF, and silicon photonics rather than pursuing the bleeding edge of transistor density. It's a pragmatic positioning—competing on specialized capabilities where the company can build durable advantages rather than chasing Moore's Law into a commodity race.
The optical connectivity push reflects a broader industry recognition: AI's infrastructure demands are reshaping semiconductor strategy.
