GlobalFoundries, the US-based semiconductor manufacturer, has acquired Cairo-based startup InfiniLink in a move designed to strengthen its silicon photonics capabilities, marking a significant milestone for North Africa’s deep-technology sector.

The acquisition provided an exit for early investors, including the state-backed Egypt Ventures, which reported a 400 per cent return on its investment. The deal underscores the growing integration of Egyptian engineering talent into the global semiconductor supply chain as demand for artificial intelligence hardware accelerates.

The transaction was announced alongside GlobalFoundries’ acquisition of Singapore’s Advanced Micro Foundry (AMF), signaling a broader strategy by the Nasdaq-listed chipmaker to address critical bottlenecks in data centre infrastructure.

Strategic Shift to Photonics

The acquisition of InfiniLink, founded in 2022, provides GlobalFoundries with specialized expertise in low-power, high-speed data transmission. InfiniLink designs silicon photonics chips — technology that uses light rather than electrical signals to move data. This approach is increasingly viewed as essential for modern data centres, where the computational intensity of generative AI models is straining traditional copper-based interconnects.

“Silicon photonics is an essential infrastructure for the AI era,” GlobalFoundries stated, noting that the acquisition is intended to create a “globally competitive” platform to help hyperscalers and enterprise customers manage data more efficiently.

While the Singaporean acquisition of AMF expands GlobalFoundries’ manufacturing capacity, the purchase of InfiniLink is focused on design depth. The Cairo team brings intellectual property in optical transceiver chipsets and monolithic silicon photonics, which allow for faster connectivity with lower power consumption.

A Win for Cairo’s Tech Ecosystem

For Egypt, the sale represents a validation of its efforts to transition its startup ecosystem from e-commerce and fintech into “deep tech” and specialized hardware.

Egypt Ventures, an investment vehicle backed by the Ministry of Planning and Economic Development and NI Capital, described the exit as a testament to the quality of local engineering.

“Our investment in InfiniLink was a solid bet on a top-tier technical team building critical technologies for the future of AI,” said Abdel Rahman Mansour, CEO of Egypt Ventures. “This deal highlights the engineering talent emerging in Egypt’s semiconductor sector.”

Mansour noted that while Egypt possesses technical expertise, the sector has historically faced capital constraints. He expressed optimism that the high-profile exit would “stimulate further investment” for founders working on transformative technologies.

Rapid Ascent

InfiniLink’s rise to acquisition was rapid. Founded by Ahmed F. Aboul-Ella and Botros George, the company focused on developing integrated optical transceiver chiplet (iOTC) technology.

Only months prior to the acquisition, in April, the startup raised $10mn in seed funding. That round included participation from MediaTek, the Taiwanese fabless chip giant, and Riyadh-based Sukna Ventures. Egyptian investors Egypt Ventures and angel investor network M Empire Angels also contributed to the funding. At the time, Sukna Ventures partner Waleed Alballaa highlighted that InfiniLink’s technology directly addressed “AI’s relentless energy demands.”

The startup’s swift integration into a major US multinational highlights the urgent global race for semiconductor efficiency. As AI workloads grow, the industry is seeking to mitigate the massive energy consumption of data centres.

Market Context

GlobalFoundries’ dual acquisition of InfiniLink and AMF places it in direct competition with other major semiconductor players vying for dominance in the photonics space. By bringing InfiniLink’s design team in-house, GlobalFoundries aims to offer customers a more integrated supply chain, secure from design through to manufacturing — a key selling point amidst ongoing global supply chain fragilities.

For the Egyptian market, the deal serves as a case study in high-value exits. It moves the narrative beyond local market solutions to producing intellectual property with immediate global application.

“This achievement demonstrates the capabilities of Egyptian founders,” Egypt Ventures stated, noting the country’s increasing role in shaping the future of global technology infrastructure.

Key Data: The InfiniLink Deal

• Acquirer: GlobalFoundries (USA)
• Target: InfiniLink (Egypt)
• Sector: Silicon Photonics / Semiconductor Design
• Key Investor Exit: Egypt Ventures (400% ROI)
• Technology: Integrated Optical Transceiver Chiplets (iOTC) intended to reduce power consumption and increase bandwidth in AI data centres.