GlobalFoundries’ chipmaking machine unfazed by global disruptions

While some chipmakers have reported a hit to their revenue due to COVID-19 lockdowns in China and other effects, New York-based GlobalFoundries said its business stood strong in the face of various global disruptions. But that may sound like an understatement, given GlobalFoundries on Tuesday reported records for revenue, …

[rcxb1]

Giving up

> GlobalFoundries on Tuesday reported records for revenue, gross margin, operating margin, and net income

That's not difficult once you've decided not to even try to develop the next-generation fab tech, and just start profit-taking on all the past R&D, with no hope of being competitive in the future.

https://www.theregister.com/2018/08/27/globalfoundries_scuttles_7nm/

[Pascal Monett]

Re: Giving up

Gotta make money some day.

Besides, there are tons of things that don't need the latest chip engraving tech. Let the others go trailblazing while you stay behind and sell the shovels.

It's a valid marketing strategy.

[Piro]

Re: Giving up

It's a strategy, and there will always be plenty of devices that don't need cutting edge processes.

There are plenty of vending machines, switches and routers, building control systems, mains powered IoT devices and various chipsets and whatever else where cost is important, but cutting edge nodes are not.

Someone might as well provide the slightly older chips and make money from it, as opposed to just throwing all the chips in to one TSMC basket.

[Duncan Macdonald]

Re: Giving up

When the required investment is over 10 years earnings and the ROI on the investment might well be negative then declining to invest was a sensible decision. GF is too small a company to compete with TSMC at the leading edge. (TSMC is over 10 times the size of GF)

Only TSMC, Samsung and Intel (finally !!) are able to finance sub 10nm manufacturing.

There will be demand for 14nm and larger process nodes for many years.