GlobalFoundries (GFS) said Wednesday it signed a letter of intent with the US Department of Commerce for a proposed $300 million CHIPS Research and Development award to advance silicon photonics for artificial intelligence.

The funding would support research into silicon photonics wafer technologies, optical materials and advanced packaging, including 3D hybrid bonding, the company said.

In a separate agreement, GlobalFoundries said the Department of Commerce will receive 1% equity interest in the company.

GlobalFoundries shares were down 2.7% in Wednesday trading.

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