TSMC has reached a five-year agreement with U.S. foundry GlobalFoundries to outsource the production of silicon interposers, a critical component for AI advanced packaging CoWoS, totaling up to $2 billion. This order will extend silicon interposer capacity beyond Taiwanese local suppliers to New York State in the U.S. for the first time, with production expected to ramp up gradually in the first half of 2028. Market analysis suggests this move reflects the strong demand for silicon interposers driven by AI advanced packaging. TSMC is expanding its outsourcing to ensure sufficient capacity and is optimistic about the future prospects of silicon interposers. This agreement also means that Taiwanese manufacturers like UMC and Powerchip will face competition from U.S. capacity in the race for incremental silicon interposer orders.