Breaking News
Comments
Oldest First | Newest First | Threaded View
IFTLE
User Rank
Author
Who is paying who ?
IFTLE   8/5/2014 1:46:07 PM
NO RATINGS
Bloomberg has been re[porting that IBM offerend to pay GF $1B to take the two fabs off their hands and GF turned down the deal asking for $2B to cover their expected losses.  [see: http://www.bloomberg.com/news/2014-08-04/ibm-said-to-have-offered-gf-cash-to-take-over-chip-unit.html ] ......IFTLE

3D Guy
User Rank
Author
The split happened sometime back
3D Guy   8/5/2014 3:05:18 PM
NO RATINGS
I heard the split happened when IBM licensed the process it developed with huge amounts of GloFo investment to UMC sometime back. That's when GloFo moved a large number of its employees out of Fishkill and started developing processes on its own. This hurt both GloFo and IBM - GloFo struggled to get 20nm to yield on its own, leading to licensing a process from Samsung at 14nm. IBM's semiconductor division lost a valuable partner who was putting in money and resources - this coming at a time when they lost the game console business was a death knell.

Its amazing how that one decision from IBM management to license to GloFo's competitor cost them. 

krisi
User Rank
Author
Re: Who is paying who ?
krisi   8/5/2014 7:24:26 PM
NO RATINGS
Interesting...I, on the other hand, wil happily take $1B and two silicon fabs ;-)...Kris

3D Guy
User Rank
Author
Re: Who is paying who ?
3D Guy   8/6/2014 12:45:01 AM
NO RATINGS
Remember, you cannot shut down the fabs and lay people off... those would be the terms of the agreement. That's $1.5B of losses per year, which, even with $1B given by IBM, would lead to $0.5B of loss in the first year. The second year would be, again, around $1B of losses... I wish I had $1.5B to burn for the next 2 years :-)

krisi
User Rank
Author
Re: Who is paying who ?
krisi   8/6/2014 10:13:11 AM
NO RATINGS
thank you @3D Guy...sure, I understand that, I was just joking...what would be your plan to make the fabs profitable again? that is a billion dollar question



Datasheets.com Parts Search

185 million searchable parts
(please enter a part number or hit search to begin)
Most Recent Comments
Like Us on Facebook
Special Video Section
Protecting sensitive electronic circuitry from voltage ...
09:45
Watch as a web server authenticates or rejects a water ...
Protecting sensitive electronic circuitry from voltage ...
Watch as a web server authenticates or rejects a water ...
Protecting sensitive electronic circuitry from voltage ...
Power can be a gating factor in success or failure of ...
Get to market faster and connect your next product to the ...
00:44
See how microQSFP is setting a new standard for tomorrow’s ...
The LTC3649 step-down regulator combines key features of a ...
Once the base layer of a design has been taped out, making ...
In this short video we show an LED light demo to ...
The LTC2380-24 is a versatile 24-bit SAR ADC that combines ...
In this short video we show an LED light demo to ...
02:46
Wireless Power enables applications where it is difficult ...
07:41
LEDs are being used in current luxury model automotive ...
With design sizes expected to increase by 5X through 2020, ...
01:48
Linear Technology’s LT8330 and LT8331, two Low Quiescent ...
The quality and reliability of Mill-Max's two-piece ...
LED lighting is an important feature in today’s and future ...
05:27