# GlobalFoundries Stock Rises Over 9% Amid Anticipation of $300 Million CHIPS Act Funding

GlobalFoundries (GF) shares rose 9.5% in pre-market trading after the company announced it had signed a Letter of Intent with the U.S. Department of Commerce. Under the agreement, the CHIPS Research and Development Office will provide up to $300 million in funding to accelerate silicon photonics research and development.

The funding will be used to develop next-generation optical materials, advanced wafer technologies and innovative packaging methods, including 3D Hybrid Bonding. These areas are considered key components of the next generation infrastructure for artificial intelligence data centers.

The company plans to double its revenue from silicon photonics by 2026, and by the end of 2028, annual revenue from this business segment is expected to exceed $1 billion.

This is not the first time GlobalFoundries has received support from the U.S. government. The company previously received funding under the CHIPS Act for semiconductor manufacturing equipment and quantum computing projects, reinforcing the view that GF is a strategically important chipmaker for the United States.

Broader market movement was relatively subdued — the S&P 500 rose 0.2%, the Nasdaq gained 0.1%, while the Dow Jones declined 0.3%. Therefore, GlobalFoundries' sharp share price increase was almost entirely driven by this company announcement.

GlobalFoundries' next financial report is scheduled for August 5, 2026. Analysts expect that, similar to the first quarter, the company will again be able to beat expectations, while the new $300 million funding package is viewed by investors as an additional positive signal regarding the company's long-term growth prospects in the AI technology market.