Right before the earnings some positive news to fool people. The biggest question is going to be margins and ASPs can’t wait to hear the BS in the earnings call and investors calling them out for it
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Thank you
@6nzn+1l6ylAOd
Another thing to consider is the 200 million target for cost cutting. Pretty obvious that the 400+ headcount reduction isn’t near enough. More coming and with the 2023 Semiconductor downturn starting. 👀
The earnings report was another smoke and mirrors show $8.1B revenue in 2022 and aprox 29% gross margins, revenue growing 23% YoY. Compare this to our main competition UMC aprox $9.5B revenue in 2022 with aprox 45% gross margins, revenue growing aprox 31% YoY. The gap between UMC and GF continues to grow. UMC and GF fall into the Tier2 category compared to TSMC and Samsung falling more into the Tier1 category. The challenge will be Wall Street and Mubadala will expect GF to match UMC's financials, however, the problem is GF has no way to get to $9.5B/year currently or in the near future thus the only way to get from 29% gross margins to 45% gross margins, expenses will continue to be heavily cut. Given GF projects only achieving aprox $8B in revenue in 2023 there is no path to higher gross margins without cutting costs more. The writing is on the wall, more cuts will be coming between cancelling more programs and reducing headcount costs. Fasten your seat belts, 2023 could be a very rough ride at GF in order to meet financial goals!!
The interesting part is that their non-wafer revenues went up.
Today’s positive outlook brought to you by Q1 layoffs. 400+ people between two fabs. Also reduced their FAB operations by 33% by dumping Fishkill. Only 2 US fabs left with <5k US workers. GF is literally eating itself to make the numbers look good. Ramp up and investment into Bangalore and Singapore continues. When was Wallstreet Smart Money ever good for US workers?
Wall Street smart cash
Flowing in like a river
Our wealth will blossom
@1rhk+1l6ylAOd
judging by your splendid command of the English language, you must be a very senior executive at GF!!!!
Haters gonna hate. Them haters can’t fathom that while we be collectin that smart Wall St money, they be sitting at home, hatin my man, TC, and his dawg, DR, wishin they could be gettin rich like the rest of us cats. TC and DR are keepin it real, bringin street smarts to GF, while the haters are livin in some fantasy world where they think they are better off, but don’t realize the well dries up in March.
Didn’t we loose the government/military partnership they rolled a few days before an earnings report with in last few earnings calls? I can’t remember when it was the big announcement.
Today, GF and General Motors announced a first-of-its-kind partnership to address the chip supply shortage and growing demand for chips in automobiles. How is it FOAK?
@fxq You point out good things here. They had tried to work with crossbar which was a total failure internally and the collaboration with crossbar. Interesting thing is micron and Intel both ditched it. GloFo cannot develop anything on their own and even from a licensing standpoint just because it was Samsung’s process did it actually work. After this I really cannot wait to hear the earnings call. TC historically is always flustered when a tough question is asked only does he internally try to show the arrogance. Only time will say at what point GloFo will start going down
And you get welfare and an unemployment check. Enjoy paying through the nose for medical.
You’ll still get a 2% raise, 5% bonus and sh!!!y management. Nothing changes
I think this one is new, previously GF announced with Volkswagon/Bosch and Ford, GM is new, I think. However, it will most likely be 40nm node, GF needs to fill Fab8 with something because 22FDX transfer is stalled there and going to France fab and 12nm the technology offering is not good, doesn't have right features for key markets using 12nm, all the eggs were put in the 22nm bucket and 12nm underfunded. This should be good for Fab 8 loading but for development it is more old stuff just getting tech transferred with no new development work to do. In addition, GF announced buying RRAM from Renesis, we have been working on that technology for many years, why do we need to buy it instead of developing internally? It seems all the internal RRAM at GF was a total failure. Basically, a long list of failing at technology development of new technologies at GF, add RRAM to the list. GM announcement good for Fab 8 loading does nothing for new development. Renesis announcement on RRAM shows another technology development failure for GF. Trying to pump up the market before earnings call ......
Old news and old tech node.. meh
Yup I saw it too. Same old tactics ….. you don’t see anyone else dropping this type of news before earnings. Is it really news too?? I thought this already out there??