GlobalFoundries Targets $1 Billion Photonics Run Rate
The chipmaker has moved its silicon photonics revenue goal to the end of 2027, backed by bookings and customer prepayments.
Updated on Nov. 5, 2026 in Semiconductors
GlobalFoundries has moved its target of an annualized silicon photonics revenue run rate near $1 billion to the end of 2027. The company expects photonics revenue of $500 million in 2026.
Why it matters
The timeline shift signals that capacity for the technology is already booked through 2027 and bookings extend into 2028. For the United States, the plan ties a reallocated $955 million CHIPS award to domestic chip manufacturing capacity.
GlobalFoundries projects $500 million in silicon photonics revenue for 2026 and a near $1 billion annualized run rate by the end of 2027, with $4 billion in planned 2027 net capital spending. The company has not stated how the targets would change if customer demand or capacity timing shifts.
The players
GlobalFoundries
A semiconductor foundry that manufactures chips for other companies rather than designing its own branded products, and a major U.S. producer of specialty chips.
The details
Customer prepayments are expected to support about one-third of the planned 2027 investment. GlobalFoundries also expects about 80% of a reallocated $955 million U.S. CHIPS award to go toward capital spending.
Timeline
2026: Expected silicon photonics revenue of $500 million.
End of 2027: Target annualized silicon photonics revenue run rate of near $1 billion.
2027: Planned $4 billion in net capital spending.
The Tech Race
The reallocated $955 million U.S. CHIPS award places GlobalFoundries' photonics expansion within the federal push to bring advanced chip production onshore under the CHIPS and Science Act. The move positions the company against rivals investing in the same optical interconnect market.
Expanded U.S. silicon photonics capacity could shape the availability of high-speed optical components used in data centers and networking equipment. The timeline suggests new capacity will be largely committed to existing customers through 2027 before becoming open to new orders.
The takeaway
Watch whether GlobalFoundries meets its 2026 and 2027 revenue markers, since customer prepayments and booked capacity are the clearest signals of demand. Investors and industry watchers should track the pace of capital spending against the $4 billion plan.
Further reading
For broader context, explore Semiconductors coverage across the U.S. chip industry.
Source note: This article includes information reported by TokenPost.
