"Millions of children are living in poverty, the planet is warming, and inflation is reaching new heights. Now, a bipartisan coalition in Congress has come together — to push for $76 billion in subsidies to the highly-profitable domestic computer chip industry. "
https://popular.info/p/congress-pushes-in-its-chips?utm_source=substack&utm_medium=email
I would add to this post that if I was part of the government officials deciding how to allocate the chip bill funds, I would take into account which companies have a history of making wiser business decisions and are more successful (14nm??!)
Where should we send the funds that would get the most impact. Where will we get best return on investment. Globalfoundries would not be anywhere near top of the list using sound finance, accounting and business based principles and logic.
The ones that are flush with cash have better leadership and better business acumen. GLOBALFOUNDRIES is led by flunkies and rejects from these companies. I have seen many times projections saying “80% of our costumer base wants these feature!” - so we spend a year plus developing and qualifying it to get into PDKs. And when it’s finally in - none of them want it. This has happened 4 times maybe more. It’s this poor business leadership that hurts us. Then there is the whole voodoo economics the finance based teams do.
In the end those other semiconductor companies who are flush with cash is because they deserve to be by making correct and sound business decisions. Unfortunately Globalfoundries has a history of habitually choosing the wrong choices.
Yes it’s sometimes feels like TC is pandering …. Doing a whole dog and pony show to drum up money and support. I hope he gets it because he will look very foolish if he doesn’t
It has been years that GF is in desperate need of money. Remember when TC hosted Mubadala at Fab 8 begging for money and they just washed their hands of it. They said get it from government and since then TC is just trying to ki-l 2 birds with one stone of which one being marketing himself for a future position and the other being obvious. If GF was cash reach they would actually compensate their employees more competitively.
Much credit to TC for lobbying for GF publicly. If GF doesn't get money some other company will. I will always want GF to remain as prominent as possible in the public eye if it means further success of the company.
On the topic of the article @OP shared, fair point for the companies that have the cash or no problem raising it. But not every semi company is flush with cash (as we may or may not know)
I noticed it too. He is like on a press tour junket. I mean good for him I guess he is trying. But you don’t see the other CEOs out there begging. So it does seem a little pathetic or a bit much. I saw some finance people debating if this is a red flag for GLOBALFOUNDRIES in that it comes across a bit desperate. Where is Samsung, amd, tsmc, intels, ceos doing the same as TC? Don’t they need the money too? Or is this a subtle way telling investors GF is in bad shape?
I see a lot of TC trying to insert himself into the picture on this. A lot of marketing maybe in hopes to secure a large % of the alotted funds. Almost panhandling because GF needs this money bad. Hat in hand. Better companies need it too but even without proceed on with projects and news fabs and ground breaking. Because they are healthier companies with leadership that actually knows what they are doing instead of Globalfoundries, “fake it until you make it,” style of business. Globalfoundries is fu---d if they don’t get this bailout. So TC is out there singing and dancing hoping to raise GF awareness and get a more coins thrown into guitar case. But let’s be honest majority of money will go to top tier GRADE AAA semiconductor companies. GLOBALFOUNDRIES will get some but it will be peanuts. You can almost predict what happens next….