(MENAFN- AsiaNet News)

• AMF is expected to generate more than $75 million in revenue in 2026, with the deal accretive to non-IFRS gross margin from the outset.
• Silicon photonics has emerged as a breakthrough technology that uses light to transfer data between and within data centers, delivering ultra-fast, energy-efficient performance.”
• GlobalFoundries' stock has fallen by 23% YTD.

GlobalFoundries, Inc. (GFS) said late Monday that it has acquired Advanced Micro Foundry (AMF), a silicon photonics foundry based in Singapore.

Despite the 35% year-to-date (YTD) surge by the Invesco PHLX Semiconductor ETF (SOXQ), GlobalFoundries stock has fallen by 23%.

The AMF Deal

GlobalFoundries said the AMF buy marks a“pivotal step” in its strategy to advance innovation and its leadership in silicon photonics.“This acquisition will expand GF's silicon photonics technology portfolio, production capacity and research and development in Singapore, complementing its existing technology capabilities in the U.S. and unlocking new market opportunities with a broader set of datacenter and communication technologies.”

The company noted that, as“traditional copper connections reach their physical limits, silicon photonics has emerged as a breakthrough technology that uses light to transfer data between and within data centers, delivering ultra-fast, energy-efficient performance.”

The U.S. company now plans to establish a silicon photonic R & D center of excellence in Singapore, partnering with Singapore's Agency for Science, Technology and Research, focusing on next-generation materials for ultra-fast data transfer at 400Gbps speed.

In a presentation posted on GlobalFoundries' website, the company said artificial intelligence (AI) will likely accelerate the adoption of silicon photonics. Accordingly, it estimates the silicon photonics wafer serviceable addressable market (SAM) to grow by more than 800% between 2026 and 2032, reaching $6.5 billion. The company also listed all major U.S. hyperscalers as adopters of the tech.

AMF is expected to generate more than $75 million in revenue in 2026, with the deal accretive to non-IFRS gross margin from the outset.

What Retail Feels About GFS Stock

Retail sentiment toward GlobalFoundries stock remained 'extremely bullish' as of early Tuesday, and the message volume on the stream also stayed at 'extremely high' levels.

GFS sentiment and message volume as of 5 a.m. ET, Nov. 18 | source: Stocktwits

The stock fell about 0.55% in Tuesday's early premarket session.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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