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IFTLE
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Who is paying who ?
IFTLE   8/5/2014 1:46:07 PM
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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

krisi
User Rank
CEO
Re: Who is paying who ?
krisi   8/5/2014 7:24:26 PM
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Interesting...I, on the other hand, wil happily take $1B and two silicon fabs ;-)...Kris

3D Guy
User Rank
Manager
Re: Who is paying who ?
3D Guy   8/6/2014 12:45:01 AM
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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
CEO
Re: Who is paying who ?
krisi   8/6/2014 10:13:11 AM
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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

3D Guy
User Rank
Manager
The split happened sometime back
3D Guy   8/5/2014 3:05:18 PM
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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. 



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