Question [WSJ] Intel in talks to buy GloFo

[jpiniero]

Wat. Says deal would be about $30B if the deal goes through.

WSJ News Exclusive | Intel Is in Talks to Buy GlobalFoundries for About $30 Billion

A deal for chip maker GlobalFoundries would be Intel’s largest acquisition. It comes as Intel is launching a major push to become a chip manufacturer for other companies.

www.wsj.com

 

[coercitiv]

@Vattila just one problem with all these takes on the possible acquisition of GF, they don't talk much about splitting up design and manufacturing. In fact, becoming a supplier for the U.S. Department of Defense may provide Intel with the wildcard they need to evade such a requirement from US government. I think all options are still on the table, and Intel will try very hard to have their cake and eat it too.

 

[DrMrLordX]

If the DoD had any brains, they'd insist on dual sourcing design AND fabrication of their chips.

 

[blckgrffn]

GlobalFoundries To Spend Billions: Doubling Fab 8, Creating New Fab in NY

www.anandtech.com

That pipeline article makes it seems like the author is dubious Intel acquisition talks are actually going on, my guess is that the Emerati state holding company Mubadala sees long term profits as a better thing to have then a bunch of dollars (to do what with? what better to invest in than silicon?) today.

We'll see

 

[Ajay]

If the DoD had any brains, they'd insist on dual sourcing design AND fabrication of their chips.

True, but at least one should be a US fab. Supply lines need to be protected against disruption from foreign intervention (to the greatest extent possible).

 

[Mopetar]

It doesn't really matter where the fab is located. None of those chips are getting assembled in the U.S. Almost anything diffused here is shipped overseas for final assembly.

I think the whole idea is kind of foolish because the U.S. already had a lot of fabs. Almost anything else that's bleeding edge is in Taiwan or South Korea who are pretty strong allies. What we don't have is assembly and a lot of other associated activities.

 

[Schmide]

In my unprofessional view on regulatory enforcement and after reading the pipeline story. It would be hard for intel to acquire Global Foundries.

The one swaying factor in intel's bid, they have almost zero presence in fabless contracts, therefore they have little dirty laundry to air.

To witch a regulatory body would ask, if we approve this acquisition, what would you do to ensure fair and equal access for direct or indirect competitors of intel branded technology?

 

[Ajay]

It doesn't really matter where the fab is located. None of those chips are getting assembled in the U.S. Almost anything diffused here is shipped overseas for final assembly.

I think the whole idea is kind of foolish because the U.S. already had a lot of fabs. Almost anything else that's bleeding edge is in Taiwan or South Korea who are pretty strong allies. What we don't have is assembly and a lot of other associated activities.

Yeah, it does matter, or should. We should have at least a small scale test and assembly plant in the US for the DOD. Taiwan, in particular, could be subject to a Chinese blockade. This is just logistics 101 for the DOD and, for the life of me, I don’t understand why they don’t insist on it.

 

[blckgrffn]

Yeah, it does matter, or should. We should have at least a small scale test and assembly plant in the US for the DOD. Taiwan, in particular, could be subject to a Chinese blockade. This is just logistics 101 for the DOD and, for the life of me, I don’t understand why they don’t insist on it.

Having been in the defense industry and knowing how deeply their supply chain requests go and how much they bristle at exports it's baffling that they don't insist on more domestic infrastructure to address their needs. Not to turn this in a P&N issue.

But if there is an entity in the US to force this issue with their suppliers, it's them.

 

[Mopetar]

Having been in the defense industry and knowing how deeply their supply chain requests go and how much they bristle at exports it's baffling that they don't insist on more domestic infrastructure to address their needs. Not to turn this in a P&N issue.

But if there is an entity in the US to force this issue with their suppliers, it's them.

Welcome to the inescapable problem of representative democracy that will insist on everyone getting a little piece of the pie to the detriment of everyone else.

My original post was meant to suggest that we simply don't have the local industry to deliver on those kinds of demands for local production. We have started plenty of fabs, but practically no one who can assemble an actual CPU.

If we wanted to invest in a business it should be that, not more fabs.

 

[A///]

You do a blockade, and it'll be considered an aggressive act of war by a multitude of nations.

 

[Roland00Address]

GlobalFoundries To Spend Billions: Doubling Fab 8, Creating New Fab in NY

www.anandtech.com

That pipeline article makes it seems like the author is dubious Intel acquisition talks are actually going on, my guess is that the Emerati state holding company Mubadala sees long term profits as a better thing to have then a bunch of dollars (to do what with? what better to invest in than silicon?) today.

We'll see

I have not watched all 3 hours of it yet, but Dr Ian Cuttress of Anandtech also has a YouTube channel separate from Anandtech (Tech Talk Potato 🥔),

well Ian just past 50k subscribers and did a long Q&A and one of the questions was on the subject matter. He doubted it then for he listed how Intel and GF are kind of in separates businesses. Intel is focusing on high performance chips of smaller geometries and GF is the everything else business such as specialized processes for that geometry even if that geometry is larger.

 

[blckgrffn]

Welcome to the inescapable problem of representative democracy that will insist on everyone getting a little piece of the pie to the detriment of everyone else.

My original post was meant to suggest that we simply don't have the local industry to deliver on those kinds of demands for local production. We have started plenty of fabs, but practically no one who can assemble an actual CPU.

If we wanted to invest in a business it should be that, not more fabs.

No disagreement there. I think it's foolish to have such a critical item of national interest not have a complete supply chain here, even at only reduced levels that would obviously result in having skills/tooling/supply chain established for ramp up if required.

I mean, we (the USA) subsidize/ed aerospace and rocketry because we need to be able to build our own airplanes and rockets for "reasons" but we let what has become a critical piece of both (not to mention so many others) projects develop huge dependencies on external industries.

It's kinda mind boggling tbh.

 

[KompuKare]

Yeah, it does matter, or should. We should have at least a small scale test and assembly plant in the US for the DOD. Taiwan, in particular, could be subject to a Chinese blockade. This is just logistics 101 for the DOD and, for the life of me, I don’t understand why they don’t insist on it.

Packaging and testing is already very complex and with 3D die stacking and other advanced techniques it is likely get far more complex really soon. Some of the 3D stacking and potentially active cooled (in-die water-cooling) options TSMC has/will have the precision is so great only TSMC themselves can do it.
Can't see a small scale test and assembly plant being able to touch any of that.
Sure, hardened parts for the military are another thing but then they need to be on larger nodes making things easier.

 

[Schmide]

Welcome to the inescapable problem of representative democracy that will insist on everyone getting a little piece of the pie to the detriment of everyone else.

Here here, bring back the Robber Barons. If people wanted to participate, they should have been rich.

 

[Mopetar]

Here here, bring back the Robber Barons. If people wanted to participate, they should have been rich.

As Winston Churchill said, "Democracy is the worst form of government, except for all of the others."

Don't mistake an expression of issues with a desire to throw the baby out with the bathwater or replace it with something far worse.

 

[aigomorla]

EDIT...

 

[Thunder 57]

You do a blockade, and it'll be considered an aggressive act of war by a multitude of nations.

Just call it a "quarantine" JFK style. Not sure if that actually happened, just basing this on the movie "13 Days".

 

[A///]

Just call it a "quarantine" JFK style. Not sure if that actually happened, just basing this on the movie "13 Days".

Way different story line.

 

[aigomorla]

Guys just a friendly reminder... lets not get political and have a mod come in and do clean up...

 

[Thunder 57]

Way different story line.

That's why I included that qualifier about the movie . Too bad it wasn't more historically accurate then.

 

[A///]

That's why I included that qualifier about the movie . Too bad it wasn't more historically accurate then.

Saw it once back when it came out on DVD. Bought the BluRay or whatever it was a few years ago and still haven't sat down to watch it. Might be wrong about getting it when it came on DVD, because I do remember buying both it and Driven, yeah that F1 Driven, at the same time from a bargain bin months after it came out. LOL

 

[DrMrLordX]

True, but at least one should be a US fab. Supply lines need to be protected against disruption from foreign intervention (to the greatest extent possible).

I was thinking both: Intel and drumroll please Globalfoundries. Which means if the Pentagon had any brains, they'd encourage the Feds to block a merger.

Guys just a friendly reminder... lets not get political and have a mod come in and do clean up...

It's Intel's darn fault for playing footsie with the DoD.

Packaging and testing is already very complex and with 3D die stacking and other advanced techniques it is likely get far more complex really soon.

Intel has packaging facilities in Malaysia. If they can do it there, they can do it here. Just not as cheaply.

 

[Vattila]

He doubted it then for he listed how Intel and GF are kind of in separates businesses. Intel is focusing on high performance chips of smaller geometries and GF is the everything else business such as specialized processes for that geometry even if that geometry is larger.

Interestingly, about half of TSMC's revenue is from legacy process nodes (16/20nm and older). This funds the development of the leading edge processes. The legacy nodes also have the majority of customers. Intel may be looking to build out this capability to make Intel Foundry Services a viable competitor.

HPC at the Heart of TSMC’s Growth

Just as in so many other areas of the world economy where real growth is being driven by those who can afford the bleeding edge, chipmakers are seeing the

www.nextplatform.com

 

[Hitman928]

For what it's worth, GloFo CEO says the story isn't true:

GlobalFoundries CEO shoots down Intel takeover story (NASDAQ:INTC)

Thomas Caulfield, CEO of semiconductor manufacturer GlobalFoundries, shot down reports that Intel (INTC) was in talks to buy the company in a $30B deal.

seekingalpha.com

 

[coercitiv]

For what it's worth, GloFo CEO says the story isn't true:

We knew this from the start, the WSJ article did mention GloFo formally denied being in any discussion with Intel.