GlobalFoundries Inc. (NASDAQ:GFS) and Marvell Technology Inc. (NASDAQ:MRVL) are expanding their long-running manufacturing partnership to increase production capacity for technology used to move data quickly across AI data centers.
Partnership Targets Rising AI Demand
Under the expanded multi-year agreement, GlobalFoundries will add manufacturing capacity at its Burlington, Vermont, facility to support Marvell’s growing requirements, the companies announced on Thursday.
As AI systems expand, data centers need faster connections between processors and other equipment. The companies aim to address that demand by increasing production of chips used in high-speed optical networking equipment.
The agreement builds on more than a decade of collaboration between GlobalFoundries and Marvell and is expected to add significant capacity.
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GlobalFoundries Expands Manufacturing Capacity
GlobalFoundries has manufactured the underlying technology for more than a decade and plans to continue investing in manufacturing capabilities in the U.S. and internationally.
The company said its existing technology already supports high-speed data connections, while its development roadmap targets faster generations as AI and cloud data centers require greater capacity.
The expanded partnership gives Marvell additional manufacturing capacity as demand for AI infrastructure grows, while GlobalFoundries gains an opportunity to increase production supporting next-generation data-center connectivity.
GlobalFoundries executives see sustained growth opportunities across AI infrastructure, optical networking, power and quantum computing as customer demand remains strong.
Executives Raise Growth Expectations
CEO Tim Breen said during its second-quarter results that the shift toward optical networking in AI data centers remains in the “very early innings,” while CFO Sam Franklin raised the company’s 2026 communications infrastructure and data center growth outlook to 50%-60% from the high-30% range.
Management also pointed to strong demand for silicon photonics, expanding capacity and longer-term opportunities in AI data centers, power delivery and quantum computing as drivers of future growth.
Price Action: Globalfoundries shares were up 5.79% at $45.52 and Marvell Technology shares were up 4.34% at $239.68 during premarket trading on Thursday, according to Benzinga Pro data.
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