Question [WSJ] Intel in talks to buy GloFo

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DrMrLordX

DrMrLordX

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Apr 27, 2000
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Roland00Address

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Dec 17, 2008
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It makes no sense what I am about to say…

but with current market caps AMD could buy Global Foundries for 1/5th of its Market Cap if GF is targeting 25 billion. I am just pointing out the reversal of fortunes and the unexpected not that it makes sense to do so.

6 years ago, AMD was 1/50th of is current stock value, and Global Foundries looked to be a better half of the former one company. It was 13 years ago this month that AMD announced its intention to split and spin off its fabs, and 6.5 years where AMD sold the last of its GF stock.
 
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DrMrLordX

DrMrLordX

Lifer
Apr 27, 2000
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@jpiniero

Looks like the relevant data is on pages 64 and 65. My takeaway here is that they would be income-positive were it not for "finance expense, tax expense, depreciation, amortization adjusted for share-based compensation expense, one-time transaction gains and associated expenses, one-time restructuring charges and litigation settlements". Namely their EBITDA is positive, but their adjusted net profit is in the red. They are shipping more wafers now in 2021 than 2020 (they had a downward trend in 2019) and it looks like they've mitigated losses in 2021 so that they've only lost $157 million in 1H 2021 (yay!) as opposed to hemmoraging billions per year. They are taking advantage of the current semiconductor fab environment, but it's gonna take awhile to get them in the black. If anyone were to buy them, now would be the time to do it before their valuation increases by too much.
 
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lightmanek

lightmanek

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Feb 19, 2017
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DrMrLordX said:
AMD just picked up Xilinx on the strength of their share value. I don't think they're going to be too eagre for more acquisitions on that scale. Plus it's not really clear what value GF offers to AMD anyway.
Click to expand...
14nm process of course!
Intel made massive amounts on cash on 14nm, so AMD can try and replicate their success with GloFo 14nm ;)
 
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PingSpike

PingSpike

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Feb 25, 2004
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lightmanek said:
14nm process of course!
Intel made massive amounts on cash on 14nm, so AMD can try and replicate their success with GloFo 14nm ;)
Click to expand...

I have thought in the current market pumping out zen+ and polaris would be good way for AMD to get marketshare in the low end of the market without having to introduce any new products or compete with wafers for their higher end products.
 
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Mopetar

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Jan 31, 2011
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Wasn't there supposedly a substrate shortage? If that's the case it doesn't pay to manufacture anything but your most profitable wafers.

Also AMD would probably use the 12LP+ node anyhow since it has significantly better power characteristics. There was a rumor a while back that the next Athlon APUs would be made on that process.
 
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