Thread regarding GlobalFoundries layoffs

Mckinsey is kept despite their useless advice because CEOs use them as an excuse that if top consulting firms can't solve it, it is not their fault. Not unique to GF as many other struggling companies are paying millions for their useless advice.

Mckinsey has recruited some fresh grad or young engineers and brand them as semicon experts to help GF solving its problem. They are rarely faulted just like those guys in Goldman Sachs. And Mudalaba being a sovereign fund, do you think they play by the book?

Who knows, Tommy might join Mckinsey as its semicon leader :)

to Post ID: @6qqq+1bebegnr: "McKinsey will still be there no matter what happens..."

Isn't it the same McKinsey & Co that just settled Purdue Pharma crisis (OxyContin case) for $0.6B recently ?
We know how well their advise worked for Purdue Pharma (bankrupt), while ki----g more US people when COVID-19 did?
Likewise their advise to "turbocharge" IBM deal by selling their assets while breaching the contract (allegedly) - yet another gross failure in Risk assessment and bad judgement, that resulted in this $2.5B lawsuit.
With IPO approaching, to damp this consultant would help to repair GloFo image - one can't talk about company values while paying them millions $$.

https://www.nytimes.com/2021/02/03/business/mckinsey-opioids-settlement.html

I am trying to understand but not able to follow on GF point : IBM can get from fraction of price from Samsung. is it true statement ? If so then why anyone need to buy from GF when they can get it from others at fraction of cost from Samsung.

If Samsung able to sell in fraction of cost for advanced 7nm why can't they sell same for other nm

Doubt Sheiks will pour more money in if there is nothing to get out from it.
Mckinsey will still be there no matter what happens as Mudabala management was mostly from there

If I were congress, I rather spend money on Intel/Micron/Samsung/TSMC because:

1. They can make advanced nodes that CHINA can't yet. No point investing in GF as Malta site only does 14nm logic (nothing else!)
2. Provide subsidies to TSMC or Samsung to expand and hire and NOT FIRE/LAYOFF after getting the money (like in IBM case)
3. Invest in companies that will survive at least till next election

1) Sheiks will not tolerate serial failures, and someone is going to take a fall for misleading Mubadala on the “Pivot” great success – either McKinsey mo--ns or Tom, we will learn it soon.
2) cut-off $M's on the lawyers and useless consultants and bring back the engineers and designers with raises and employee ownership
3) throwing more taxpayers money to GloFo and IBM without strings attached will not address the “China Threat” problem – just more money for the lawyers and McKinsey.

No doubt the suit will put a dent on GF's inflated IPO value. But GF doesn't have $1.5B to give to IBM, let alone $2.5B, so it would be interesting to see what Tommy will do

It is building a new fab in Singapore called 7H (true story) with the government's heavy subsidy, and insider sources claimed that the expansion is another disaster in the making with many dirty deals.

This lawsuit will be quietly settled. IBM has the money and lawyers to drag this about for years, GF does not and it would affect IPO. Expect a settlement that will never be announced. In a few months the story will disappear..

Ironically, Tom is a former IBM'er and came to GloFo in 2015 as a part of "asset transfer" deal (alone with a big army of failed IBM managers) - so what's 2.5 Billions $$ between old good friends?

https://www.eetasia.com/ibm-sues-globalfoundries-over-breach-of-contract/

Can you spot the liar?

1. GlobalFoundries countered that it invested the $1.5 billion — and billions of dollars more — on modernizing some of the former IBM fabs (it did, in fact, subsequently sell off some of the fabs it received from IBM, to ON Semiconductor and to Marvell)

2. GF is currently arguing that turning to Samsung was actually to IBM’s benefit, because IBM was able to buy 7nm wafers from Samsung at a time when 7nm product would be fully competitive. Furthermore, IBM was able to buy those wafers from Samsung at “a fraction” of the price that GF would have had to charge them (assuming GF got to 7nm, which it didn’t).

3. F’s document said that the two companies have not communicated since that time — certainly, IBM had not complained of any breach of contract since then

4. With the U.S. Government looking to actively support the domestic semiconductor industry, this is a bad time for two U.S. companies to be squabbling, the company explained in its petition to dismiss

5. [GlobalFoundries] now has a profitable year under its belt.

tl;dr
GF's excuse: BigBlue agreed to give me its jewelry and money to pay for my gambling debt and kickbacks in 2015. Just because I dump you now you suing me for the money I owe you? Liar!
Meanwhile, I am looping in BoA, JPMorgan.... to package myself as the next 30B Gigolo of semicon.

https://www.timesunion.com/business/article/IBM-tells-its-version-of-how-a-fab-marriage-went-16236971.php

https://www.bloomberg.com/news/articles/2021-06-09/globalfoundries-said-to-add-jpmorgan-bofa-to-jumbo-ipo-roster

Will be the Chief Architect of "pivot" and mass layoffs (see "watch my lips - no layoffs") be able to cash his $$ M's in stock options now?
IBM has the case: " “This lawsuit is yet another attempt by GlobalFoundries to cover up its fraud and deliberate breaches of contract in failing to fulfill its legal obligations to IBM, including the development and supply of high-performance semiconductor chips. IBM contributed $1.5 billion to GlobalFoundries to supply the next generation of chips, and GlobalFoundries utterly abandoned IBM as soon as the final payment was received and sold off assets from the deal for its own enrichment. IBM welcomes the opportunity to seek the recovery of the substantial damages it is due.”