"Megafoundries" are only needed to service a few, monster markets like smartphones and tablets. There you have to scale and bleeding edge technology to make the cheapest memories or processors to serve huge volume orders. It is a total commodity play. There's a lot more innovation in the semiconductor industry than just pushing Moore's Law and I think XMC and others realize this.
They know it. That's exactly why Lange, ex-IBMer and now at XMC, is saying that's not what the new foundry will do. Instead, XMC is focused on selected customers, forge "partnerships" (a la IBM Common Platform), customize process, and develop "technology with a twist" for that partner, as he put it.
If they are doing straight cmos from 0.35 to 65...i see this venture to be a gross failure...unless they invest R and D and look at doing non standard stuff line SiGe BiCMOS or GaN...this venture will get eaten by the likes of TSMC, GloFo....
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