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GlobalFoundries Acquires "Chartered"

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January 14, 2010 7:26:28 AM

GlobalFoundries Integrates Chartered

""GlobalFoundries said it has formally completed the integration with Singapore's Chartered Semiconductor. The enlarged foundry will offer manufacturing in all three regions once the Malta, N.Y., fab is finished in 2012. "We are sending out a strong message that we will be an integrated company across the globe, with regionalized manufacturing," said Tom Sonderman, vice president.""

http://www.semiconductor.net/article/444020-GlobalFound...


GlobalFoundries readies tool orders, swallows Chartered

""This quarter, the company is ''kicking off selection teams'' that will procure tools for the fab, Armour said at SEMI's Industry Strategy Symposium (ISS) here. In the third quarter, GlobalFoundries will select the tools for the U.S. fab., he told EE Times.""

http://www.eetimes.com/news/latest/showArticle.jhtml?ar...


GlobalFoundries absorbs Chartered, the race is on

""GlobalFoundries is introducing a new model for IDM (Integrated Device Manufacturing). This means more emphasis on collaboration between customers, engineers, and everyone involved on the fab side of the equation. In the past, most of the R&D was segmented so the customer would hand off a rigid set of specifications to the fab. Then, the fab had to go back to the customer and explain why that was the hard way to do things. The old-fashioned back-and-forth process took a lot of time. ""

http://www.brightsideofnews.com/news/2010/1/13/globalfo...



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This is all very interesting.

But I am more interested in how this will affect AMD.
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More about : globalfoundries acquires chartered

January 14, 2010 8:17:52 AM

Short term, it allows for ATI to make their chips there, reducing costs, as some profits go back to AMD, where as previously, all the monies paid out went to TSMC, with no returns.
The R&D will be shared, meaning, the costs for AMD will be 35% of whatever the overall tooling/R&D will be, compared to 100% prior to this, when they were sole owner.
This relieves AMD of the huge burdensome R&D overheadsm which have gone up and will continue to as we head into smaller nodes, each costing more than the last.

Long term, this allows for AMD a better ROI, as itll pay off with more customers seen as a profit, whereas in the past, they never let out their fabs for other work for other clientele.
I know theres been alot said, theyll dump AMD when theyre busy, AMD will have to wait in line for other clients etc, but, no one saw this coming, which is a brilliant move, as it allows for greater flexability, and introduces many clients tp GF, which AMD will get a slice of pie from.
If they do put AMD on hold, it only means AMD makes money while they wait, since all those fabs are that busy, not the best position to be in, but nothing devastating, and theyll recieve compensations while they wait, but I dont see this as a possibility, because, if they need that much fab space, GF will buy/make more, which does cost monies, but since alot of those monies are finally cleeared up, due also to the x86 licensing costs being gone, also the new agreement on its flexability,AMD and GF, backed by ATIC, can look more clearly into its growth down the road with much less hesitation
a b à CPUs
January 14, 2010 8:24:37 AM

Good result ... though I imagine they will emplement a new QMS at Chartered.

Poor NVidia ... good time to sell that stock (if you have some) as it is in for a hellishly bumpy ride from today.

heh heh ...
January 14, 2010 8:33:17 AM

I am not so sure that AMD will profit from this acquisition. I thought it might be GF doing it's own thing; and the deal with GF and AMD might only apply to the original deal between them.

I really have not seen, and do not know, the original terms of the spinoff.

And I also wonder if there are time limits - how long will the spinoff deal last?

I suppose a link to that info would be good if anybody has a good one.
January 14, 2010 8:51:54 AM

My understanding is, whats in house, or current fabs, excluding Chartered, means profit elidgibility.
Chatered are ATICs further contributions into GF, which can be done several ways, meaning AMD may have a future ability for a but in into the Chartered acquisition, or, its held as exclusive to ATIC side only, and doesnt effect % of original deal either way.
I havnt found the nitty gritty details, but thats how theyre done usually, meaning the lessor partner is protected from takeover/buyout by these actions
a c 117 à CPUs
January 14, 2010 12:32:24 PM

AMD and Chartered have been 'buddied-up' for 5 or 6 years at 65nm.

It makes good sense for GF to bring them in as part of the 'family'.
January 14, 2010 1:17:34 PM

Looks like TSMC will really have to step it up or risk losing substantial contracts. Fabless companies (Nvidia for example) do not care who does it as long as it is cost effective for them. Sounds like win/win for everyone except TSMC and Intel to me.
a b à CPUs
January 14, 2010 2:44:24 PM

roofus said:
Looks like TSMC will really have to step it up or risk losing substantial contracts. Fabless companies (Nvidia for example) do not care who does it as long as it is cost effective for them. Sounds like win/win for everyone except TSMC and Intel to me.


What makes it a loss for Intel? Intel only fabs for itself - it doesn't do outside fabbing to my knowledge. Hence no loss of business for Intel, if that is what you meant.
January 14, 2010 2:47:07 PM

It hurts them in the respect that their competition on many fronts will have yet another fab to choose from and most likely better ran.
a b à CPUs
January 14, 2010 3:10:24 PM

roofus said:
It hurts them in the respect that their competition on many fronts will have yet another fab to choose from and most likely better ran.


OK, so you're saying the eventual products out of GF's Chartered will better compete with the products out of Intel's fabs. I thought you meant GF+Chartered would take some sort of fab marketshare from Intel..
January 14, 2010 4:06:54 PM

nah, just a big picture thought of mine. not really a foundry to foundry competition. :) 
January 14, 2010 4:23:26 PM

This is great news. Hopefully it will equate to more powerful manufacturing capabilites for AMD.
January 14, 2010 5:33:29 PM

Personally, I know very little about fabs, what they do, how they do it, etc. I have picked up tiny bits of info by reading discussions, occasional articles, sometimes google things, the usual.

This I see is a real game changer.

A lot of what AMD needs will go into the high end facilities of GF. A lot of that is probably "custom orders". It's seems necessarily like that because AMD is either competing with, or creating, the leading edge of tek. And of course, many collaborative partners are involved in that as well. Indeed, this is one huge view of collaboration, with various big businesses all working together for mutual benefit, and that is all about quality product, healthy competition, and the free market just doing it's thing.

There is a view of a new giant corporation; and the money involved is no chump change.

We need some info on the original spinoff - a good article or a summary of the agreement. I wouldn't be surprised if the news presents a view into what this all means for GF and AMD and their relationship.

I can't see AMD getting 34% of everything GF does - forever. I saw mention of some 5-years figure somewhere = but I don't know. If there is a time limit, it seems AMD needs immediate progress to max it's benefits and prepare for future - and that is my interest in getting that info. Also the idea of exclusivity for AMD might have limits as well. But surely it's not like - if GF pours money into something, the AMD gets instant profit - that's a bit too simple. In these articles I linked, there is little mention of AMD at all. This is about GF growing it's business.

GF has some recent new customers, and it seems they now have most of Chartered's existing customers and chance for more, esp. due to better tooling/tek as that evolves.

They also will do some growing pains, as employees tend to come and go in major changes like this. And there will a lot of management issues to address as they stabilize the existing and develop the global view.
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January 14, 2010 8:01:37 PM

TechnologyCoordinator said:
This is great news. Hopefully it will equate to more powerful manufacturing capabilites for AMD.


Hey, long time no read :D . Didn't you have your kid yet?? If so, how are those dirty diapers treating ya?? :p 
January 15, 2010 12:14:53 PM

fazers_on_stun said:
Hey, long time no read :D . Didn't you have your kid yet?? If so, how are those dirty diapers treating ya?? :p 


LOL, yup! We had her January 4th, just in time to NOT a get tax break!

Kearsten
January 4th, 2010
8 Pounds, 13 Ounces
21 1/2 inches

Baby is healthy and has no birth defects. My wife is doing alright, but the emergency c-section is causing her significant pain.
Anonymous
a b à CPUs
January 15, 2010 12:16:29 PM

Oooh big baby. :D 

Gz btw and best of luck.
a c 172 à CPUs
January 15, 2010 12:31:22 PM

Congratulations.
January 15, 2010 12:53:49 PM

Considering Chartered were losing money before being bought out, I guess Global Floundries is hoping that if you tie enough rocks together they will float.
January 15, 2010 1:02:41 PM

TechnologyCoordinator said:
LOL, yup! We had her January 4th, just in time to NOT a get tax break!

Kearsten
January 4th, 2010
8 Pounds, 13 Ounces
21 1/2 inches

Baby is healthy and has no birth defects. My wife is doing alright, but the emergency c-section is causing her significant pain.

Congrats to you and misses TC!!! And for Kearsten Some elaphanants
[:jaydeejohn:3] [:jaydeejohn:3] [:jaydeejohn:3] [:jaydeejohn:3] [:jaydeejohn:3] [:jaydeejohn:3] [:jaydeejohn:3] [:jaydeejohn:3] [:jaydeejohn:3]
a b à CPUs
January 15, 2010 3:48:42 PM

TechnologyCoordinator said:
LOL, yup! We had her January 4th, just in time to NOT a get tax break!

Kearsten
January 4th, 2010
8 Pounds, 13 Ounces
21 1/2 inches

Baby is healthy and has no birth defects. My wife is doing alright, but the emergency c-section is causing her significant pain.


Well congratulations, Poppa! :p  And like Jenny said, that is one big baby - no wonder your wife had a C-section. My son was 8 lbs 10 oz and my wife had to get a C-section as well after being in induced labor for some 8 hours. He'll turn 3 next month, and is already playing Loderunner on my old Pentium-166 machine (actually he likes to steer the hero into the red monks and watch him get eaten alive :kaola:  ) .
January 15, 2010 3:59:52 PM

My oldest was 9'2" with 17 inch shoulders, my ex ummm had a ripping good time with him
!