Thread regarding GlobalFoundries layoffs

Cash crunch at Globalfoundries????

So here is a situation that I thing is going on. With the current demand and not enough capacity and the amount of years of cash crunch. Tom is faced with a dire situation to somehow make the most of the situation to get GF in a good financial position. To do so he took two steps:
1) Reduce the raises
2) Spend the saved cash towards IPO
3) Spend the cash for capacity increase so GF does not miss the boat

With the first point I believe He probably took a calculated gamble that people are going to leave but the impact of that in the near future would be minimal as there is barely any development required. All you need to do is just keep shipping the wafers and make sure the fab is running full.

Once the IPO is out there would be enough cash and at that point think about the strategy to get experienced people back based on what needs to be done beyond 14, etc…

However the big trouble is the Roi on experienced hires in various areas that are sitting in California who are busy traveling to various sites every week with unquantifiable output is the issue. They think they are untouchable because they are the talent and nobody can have them move to HQ in Malta. Think about 2x-3x salary and on top of weekly trips to Dresden Singapore Malta…. It’s ridiculous. These are the folks who need to be fired

by Anonymous
| 2211 views | | 9 replies (last September 19, 2021) | Reply
Post ID: @OP+1cIvBGd6
Comment! It's anonymous!

9 replies (most recent on top)

@aatv

Let's see if IBM lawsuit will be in full force when GF IPO is about to happen.
I bet GF capitalization will drop further from $25B. Looking for to seeing that happening!!!

by Anonymous
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Post ID: @cqeb+1cIvBGd6

to @aatv:

  • really?

" ...the judge cleared the way for IBM's breach-of-contract claims to move forward, while he also dismissed a counter-suit that GlobalFoundries had filed against IBM..."

by Gary Patton
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Post ID: @byyr+1cIvBGd6

@2wbu+1cIvBGd6

I told you GF doesn't have to be scared of IBM lawsuit. First ruling in GF's favor...

by Anonymous
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Post ID: @aatv+1cIvBGd6

@2wbu if you consider the PDK aspect as design than yes but the IBM design team was busy designing whole processors etc which is not required. Can you explain if amd, Qualcomm, or anyone comes to Globalfoundries what design aspect from gf is going to help. Please explain why your statement you have no idea what you are talking about

by Anonymous
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Post ID: @5zap+1cIvBGd6

To @2jqp+
“GF focusing on foundry business does not need a design” - really? you’ve no idea what you're talking about.
To @1icn+
“too much money being wasted on mighty SBU folks …” – don’t disagree, but it was Tom’s decision back in 2019 to triple the SBU’s (with 3 SVPs, 3 CTO’s and so on), which failed to improve the bottom line. Unlikely he'd undo it now.
“… IBM lawsuit - nothing GF has to be scared of. GF handled Tsmc well.” – IBM sued for contact breaching, not for patent infringement - and how exactly GF settled the lawsuit with T-company?

by Anonymous
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Post ID: @2wbu+1cIvBGd6

Hc EFK fab could have been kept from the capacity standpoint but that place was a junk filled with asbestos etc… 200 mm SGP was MEMS and it is only expected to grow 9% and a market of 11 billion and thus it was good to get rid of as the margin would be very minimal and lastly GF focusing on foundry business does not need a design so all of those decisions I believe are justified from a fab perspective

by Anonymous
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Post ID: @2jqp+1cIvBGd6

@hcq+1cIvBGd6
Agreed with the first part of your post but not background. The 3 divestitures you mentioned were before covid-fuelled bo-m and 'not enough capacity' situation. IBM lawsuit - nothing GF has to be scared of. GF handled Tsmc well. OP brought an important point about too much money being wasted on mighty SBU folks in CA and their travels, which is demoralizing for fab folks. Same wastage with TEQ. All for an unquantifiable output. They have failed in bringing new customers. Firing them will not solve the problem but will help reduce it.

by Anonymous
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Post ID: @1icn+1cIvBGd6

OP, you are too optimistic about GF surviving post IPO.
IPO is just a way for the SLT to cash out and leave us dead and stuck inside.
GF at the peak business is still losing money, what makes you think we will survive when the cycle burst?

This is what I imagine how it went.
Tom is saving every cash to try to pump up the statement. Once IPO is done, each of the SLT will take a big fat golden parachute and retire. They will also sell the stock before it crashes as GF will have to publish GAAP statement which has been deep red since forever. The so-called expansion won't happen unless the government funds it and serves more like free ads for the upcoming IPO.

by Anonymous
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Post ID: @eip+1cIvBGd6

“… Tom is faced with a dire situation…”
A CEO entitled for 1% of IPO market cap or $250-$300M with the current IPO target. Nothing else matters – if Intel buys GloFo for $30B (as WLJ reported) prior to IPO, this is the dire situation indeed- for him and few others! That explains everything, including dog and pony show in Malta with Chuck and drum beating about Fab8.2 expansion.
Background: sold to ON-Semi 300mm Fab in EFK, 200mm Fab in SGP sold to VIS and the Top-notch IBM’s design team (Avera Semi) sold to Marvell – that much for “not enough capacity” and “calculated gamble that people are going to leave”.
Reported profits hardly enough to cover $1.5B+ IBM’s lawsuit, and not nearly enough for massive CAPEX spending to build multiple fabs as Mubadala isn’t going to write carte blanche checks no longer. Saying that firing the folks in California” will solve the problem – you can’t be serious!

by vermonter
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Post ID: @hcq+1cIvBGd6

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