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Malta Tour Shows GF Rising

Ryan Shrout
2/7/2018 00:01 AM EST

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realjjj
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Re: EUV cannot be GF's strategy
realjjj   2/7/2018 11:23:38 AM
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Noticed recently that UMC had some 18% gross margins in 2017 while TSMC is always at around 50%. Given how much share TSMC has at those kind of margins, doubt others can even get close to same costs. They could apply a lot more pricing pressure to grab share, if they had competitive costs. This is just an assumption so do not take it as a fact.

resistion
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EUV cannot be GF's strategy
resistion   2/7/2018 9:54:13 AM
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At this stage of the 7nm game, GF cannot rely on EUV for them to get ahead of TSMC or Samsung. Samsung already said they would use 10 EUV tools for 7nm, which would easily beat GF's 2-4 tools at the EUV game. Likewise, TSMC loses its current advantage over Samsung by switching to EUV. On the other hand, TSMC is first player, can get away with the most expensive multipatterning while Samsung is not as active. So GF needs to develop a smarter, cheaper double patterning to gain any traction against TSMC and Samsung.

Horus
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The future business seems tilted away from GF
Horus   2/7/2018 7:16:19 AM
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Ryan,  No idea where you got the idea that GF was taking customers away from TSMC.The business with AMD is based on a legacy wafer supply Agreement ( GF is essentially the spinoff of AMD's Fabs ) AMD has to buy GF wafers or incur substantial financial penalties.In fact the amendments to the agreement in 2016 (Impacting period 2016 - 2020 ) suggests strongly that other companies will in fact start taking business away from GF rather than vice-versa. http://www.marketwired.com/press-release/amd-announces-multi-year-amendment-wafer-supply-agreement-with-globalfoundries-nasdaq-amd-2154755.htm GF's 14nm partnership with Samsung is in fact an expensive technology license to manufacture. A reverse case of an American company licensing Asian technology and taking the role of lower value volume production. It brought manufacturing back to the US but the financial sustainability of this is in question. GF is not in the running for 10nm, only TSMC/Samsung are. Most semiconductor publications suggests that TSMC will take 100% of the 7nm market at least for 2018 with Samsung as the likely contender in the later part of 2019. As for GF,  it's even a question what GF's 7nm wafer Yields are looking like at this late stage and those 2 expensive EUV tools costing USD 100+ million each (sold by ASML making the big bucks ) are any accountants nightmare.  

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