GlobalFoundries (GFS) shares rose 3.7% in premarket trading on Monday after the semiconductor foundry announced it entered into a technology licensing agreement with Taiwan Semicoductor (TSM) aimed at helping its customers, including those in the data center space.
Taiwan Semiconductor shares rose 2.5% in premarket trading.
GlobalFoundries is licensing 650V and 80V Gallium Nitride technology from TSM, which the company says will help boost its capabilities for datacenter, industrial and automotive power applications, the company said in a statement.
Gallium Nitride solutions are aimed at “harsh” environments and will go towards development, device performance and application integration, GlobalFoundries added. The company will start using the technology at its manufacturing facility in Burlington, Vermont. Development is set for early next year, with production set for later in 2026, the company added.
“This agreement reinforces GF’s commitment to innovation and its strategic focus on differentiated technologies that address essential power devices that we use to live, work and connect,” said GlobalFoundries executive Téa Williams. “With the addition of this proven GaN technology, we will accelerate the development of our next-generation GaN chips and deliver differentiated solutions that address critical power gaps for mission critical applications from the datacenter, to the car, and to the factory floor.”