LONDON – Globalfoundries Inc. and its majority shareholder, the Abu Dhabi controlled Advanced Technology Investment Co. (ATIC), have announced Ajit Manocha has been appointed interim CEO. The move is part of a leadership change that sees James Norling becoming executive chairman of the board and Ibrahim Ajami, CEO of ATIC, appointed vice chairman. All appointments are effective immediately.
Foundry chipmaker Globalfoundries (Sunnyvale, Calif.) said it has put a new leadership team in place to meet demands from customers for more capacity, faster technology development and greater agility. The move is also part of a plan to spend $6 billion on technology, talent and manufacturing capacity over the next 18 months, the company said.
Manocha, who has been working as a consultant to ATIC, replaces Doug Grose, who has served as CEO since the formation of Globalfoundries. Grose will become a senior advisor to company focused on the delivery of next-generation technologies, Globalfoundries said.
Chia Song Hwee, chief operating officer, will leave the company in August 2011 to become "part of Singapore's business future," Globalfoundries said.
"Under this new leadership team, investment in Globalfoundries will double over the next 18 months," said Ajami, in a statement. A company spokesman added that Globalfoundries'technology roadmap remains "on track" as evidenced by the partnership with AMD on the Llano Fusion processor, which is made by Globalfoundries in a 32-nm high-K metal-gate manufacturing process.
@gutiea: AMD is not a Dresden Company. Globalfoundries is not a Dresden Company.
For those of you who do not know about Dresden, it is meant to be the center for one of the two remaining large semiconductor clusters in Europe, more at www.silicon-saxony.com . Both have their headquarters far away from Dresden and are being managed by non-Germans from these far away locations. The technologies that are being developed at the Dresden fab are leading edge in terms of dimensions, quality and time-to-market. Now it comes-the market(ing). Technologies and processors need to be sold! To me it seems to be more and more a problem of selling these things. They are not being sold by the Dresden site. In Dresden is (only) technology development and fabrication. These guys though stick (and always have)to their promisses and schedules to the share holders and customers with all the effort (and money) that this takes. But do the marketing and sales guys do that too? If it might become a disaster it will not be because of anybody in Dresden!
In my opinion, lot of thought and deliberations should be put in, before choosing a person of Indian origin as CEO, especially in a situation of economic/financial distress the entire world is in. Relying on 'degrees' and 'certificates' will only pave way for 'conventional' approaches. In this current recession/depression, what we need is a highly unorthodox approach. Sure, people of Indian origin can follow the rule book to the T, but 'break the rules'? Definitely not. Vikram Pandit was chosen as CEO of Citigroup and there has been no 'rapid progress'. Conservative approaches is less likely to work in such times.
Global Foundries is competing with the best in the World, "TSMC", and can't even keep their execs from the Chartered acquisition. Temporary CEO? Sounds like AMD who can't find a leader?
The reliance upon a AMD as a base volume of business and a lack of competitive sales team will be their doom. Choosing NY as a technical center will not go well as politics makes a bad business partner. Too bad to see another AMD company fail. Let's hope their Arab owners don't run out of oil before GF runs out of money.
When GF was initiated the concern was that ATIS would invest in the most capital intensive market known on the planet. Sort of puts a sore spot on the western leadership running investments for ATIS and sourced from companies that were never great successes. Well hind-sight is 20:20 and now the investors need to clean house. First they should start with management that is not just focused on filling their pockets with millions of dollars, willing to sit in less fancy offices, cares about creating long term jobs for employees, and willing to be a leader to the Middle East investors of ATIS. GF does not need another re-tread semiconductor CEO with a big name but less than stellar performance. Maybe it is time to recruit from outside the industry!
I guess anyone that inherits the money losing ops of AMD in Dresden, merges it with the money loosing ops of Chartered in Singapore, and decides to build two new Fabs (NY and Abu Dhabi), both of them really late in the cycle as to matter at all in any credible competition; and in the process blows away $10 billion to start; while sustaining steady losses of over $0.50 on every dollar of product; or close to $2.4 billion this year, up from $2.0 billion last year; and sets up the company to obliterate close to $15 billion over the next 5 years is a venture investments sales genius!
It is miracle that Dr. Grosse has survived this long amidst TSMCs dominance, lack of volume sales, historical losses, and recently rumored reposition of Intel in the wireless foundry business.
My only question is: How did Dr. Hector Ruiz and Dr. Doug Grosse managed to sell ATIC and Mubadala on the idea of converting Abu Dhabi in another Dresden like Silicon disaster?
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