ATIC moves to buy out GlobalFoundries

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v8envy

Platinum Member
Sep 7, 2002
2,720
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Short term gain, long term loss possible.

Frees up capital now for R&D, marketing, whathaveyou. OTOH, Global Foundries will want to maximize profit, will have their own executives to overcompensate and so on.
 
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Lonyo

Lifer
Aug 10, 2002
21,938
6
81
v8envy said:
Short term gain, long term loss possible.

Frees up capital now for R&D, marketing, whathaveyou. OTOH, Global Foundries will want to maximize profit, will have their own executives to overcompensate and so on.
Click to expand...

But AMD won't have to put any R&D into fabrication and will (presumably) maintain strong ties with GF.
GF will need a "qual driver" (as IDC put it), and it seems reasonable that AMD+ATI can be that qual driver for new process tech.

That ensures a good relationship between the two companies and means that while AMD, while paying more for their chips, will be probably at the leading edge of process use and also allows GF to expand capacity to help AMD.
Given that AMD doesn't have the money to invest in new fabs, this means it's more likely that future AMD products will use smaller processes because there will be more investment in their development, and potentially more capacity available.

Also for ATI it makes no difference, since all their production is already outsourced.
 
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T2k

Golden Member
Feb 24, 2004
1,665
5
81
This isn't unexpected, it was AMD's plan all laong the way, to become fabless - and it definitely makes a lot of sense; first and foremost they can take the last red-liner off their portfolio and second they can focus on what they are good at, designing architectures... BTW stock is at one-year high... ;)
 
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soccerballtux

Lifer
Dec 30, 2004
12,553
2
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T2k said:
This isn't unexpected, it was AMD's plan all laong the way, to become fabless - and it definitely makes a lot of sense; first and foremost they can take the last red-liner off their portfolio and second they can focus on what they are good at, designing architectures... BTW stock is at one-year high... ;)
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All stock is at 1 year high after last march :/
 
yh125d

yh125d

Diamond Member
Dec 23, 2006
6,886
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Hrmm, if they keep strong ties with GF, and GF stays on the top of process tech like expected, this short term liquidity and long term we-aren't-paying-for-our-own-fabs-anymore could work out pretty well
 
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Lonyo

Lifer
Aug 10, 2002
21,938
6
81
If AMD wants to grow they need more manufacturing capacity than they can realistically afford anyway.
Given that 1/3~1/4 or so of their revenue (the GPU part) is already outsourced, as are (I think) chipsets, and also some flex CPU capacity, it's only beneficial to the company and while there will be some shift in terms of costs of production, the fact that they don't have to worry about capacity utilisation anymore, and will probably have more optional production capacity to work with, it's win-win for them.
 
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Genx87

Lifer
Apr 8, 2002
41,091
513
126
This will be a great move for AMD imo. No more huge capital investments(costs) in GF. Now they are more like Nvidia. A fabless design house.
 
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Rezist

Senior member
Jun 20, 2009
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This is also to lure new customers. As long as there seen as AMD's fab a company like nVidia would never use them (not that they ever will just an example).
 
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Lonyo

Lifer
Aug 10, 2002
21,938
6
81
AMD just basically categorically denied that ATIC are going to buy out their GF share in the near future, but did state that they will be doing some accounting related thing that separates their financials from those of GF.

Future cashflow/balance sheets will reflect AMD product company only.
Only connection to GF will be through purchase and sale of wafers.
 
G

Genx87

Lifer
Apr 8, 2002
41,091
513
126
Rezist said:
This is also to lure new customers. As long as there seen as AMD's fab a company like nVidia would never use them (not that they ever will just an example).
Click to expand...

Nvidia will if they provide a compelling product. Or do you think Nvidia enjoys being burned twice in under a decade by TMSC? :)
 
Nemesis 1

Nemesis 1

Lifer
Dec 30, 2006
11,366
2
0
It also means NY state is funding Arabs who have Alot of money . Sad we help Arabs fund . But what of american companies that could use that funding . I new this is how this would turn out . NY state is broke and now it seems it is funding Rich arab nations LOL.
 
yh125d

yh125d

Diamond Member
Dec 23, 2006
6,886
0
76
How is them building a fab in NY, the state of NY funding them? If anything, arab money is funding the state of NY, not the other way around
 
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hans007

Lifer
Feb 1, 2000
20,212
18
81
soccerballtux said:
All stock is at 1 year high after last march :/
Click to expand...

just like every other stock...

the market will probably collapse given the crap holding it up. amd still is in massive debt. as much as i want them to do well... most stock prices are not justifiable right now.
 
Xpl1c1t

Xpl1c1t

Member
Feb 20, 2004
151
0
0
according to the quoted skepticism of the leadership in Intel and Nvidia, it would seem this is a move to make GF as separate from AMD as possible in a bid to make the foundry more appealing to massive orders for the aforementioned companies' designs.

hate to see one of my favorite companies lose their incredible strength in material design...
hate to see one of the greatest engineering teams in semiconducting history be sold to big government venture capitalists...
who is ATIC anyway... when were they conceived? how did they get all that cash?

i guess this is in the benefit of the entire semiconducting world, competition is a (un)necessary tool to stimulate (engineers)prices.
 
exar333

exar333

Diamond Member
Feb 7, 2004
8,518
8
91
Don't forget that ATIC also owns IIRC ~18% of AMD. I can't recall the thread, but I definitely will not be buying AMD products in the future if they are ATIC majority-owned. I like the "little guy" but would much prefer a company like Intel or NV over a ATIC-driven AMD/GF. RIP AMD as we know it.
 
L

Lonyo

Lifer
Aug 10, 2002
21,938
6
81
ExarKun333 said:
Don't forget that ATIC also owns IIRC ~18% of AMD. I can't recall the thread, but I definitely will not be buying AMD products in the future if they are ATIC majority-owned. I like the "little guy" but would much prefer a company like Intel or NV over a ATIC-driven AMD/GF. RIP AMD as we know it.
Click to expand...

Wow.
I presume you also are going to buy an all electric car and make sure it runs from only nuclear or renewable grid power too?
Otherwise, every time you buy gas for your car, you're helping groups like ATIC buy into companies like AMD and help keep them going.

Jesus, the xenophobia and insane "patriotism" in some places is astounding.
Also I presume you will try and avoid any products fabbed at GlobalFoundries, since they ARE majority ATIC owned?
 
akugami

akugami

Diamond Member
Feb 14, 2005
6,210
2,551
136
To be fair, most products have money going to so many different places that it's impossible to call any company American (or whatever country) anymore. For years, a large part of the design and operations of AMD went on in Germany. Companies like Intel, MS, nVidia, have a lot of their products manufactured in other countries. That's not even counting all the crap we make in China. And while it might be "Assembled in the USA" products might have their parts made in five different countries before being put together in the good'ol US of A. And lest we forget, this is the video card forums and I believe ATI was originally Canadian.
 
C

crisscross

Golden Member
Apr 29, 2001
1,598
0
71
ExarKun333 said:
Don't forget that ATIC also owns IIRC ~18% of AMD. I can't recall the thread, but I definitely will not be buying AMD products in the future if they are ATIC majority-owned. I like the "little guy" but would much prefer a company like Intel or NV over a ATIC-driven AMD/GF. RIP AMD as we know it.
Click to expand...

Agreed, I am Indian and I have no problems buying American, European or Asian but Arab sorry Intel it is for me from now on, just wish Nvidia would come out with a low power graphics card.
 
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