GlobalFoundries sees ‘strong’ demand for Chinese optical modules amid data centre boom

The core story is not just demand, but GlobalFoundries deepening its China presence. The US chipmaker actively carves a niche with Chinese optical module makers. This directly counters broader US-China tech decoupling narratives. GlobalFoundries sees a clear business case in China's data center growth.

For Asia, this points to continued resilience in China's domestic tech supply chain, particularly for optical components. Chinese data center operators will benefit from a more localized and stable supply. This also suggests that some foreign chipmakers will prioritize market access over geopolitical pressures, especially in segments not directly targeted by export controls.

The thing to watch is whether other US or European chipmakers follow GlobalFoundries' lead. The test for them is whether they can secure similar market access and demand without facing regulatory pushback. Any further expansion by a major foreign player into China's chip ecosystem would signal a significant shift in strategy.