Heard GF is planning to file for bankruptcy soon. Not surprised, it has no where to go. With key players like TSMC, Intel and Samsung firing on all cylinders, this badly managed company kept going south since pivot.
RIP GF
13 replies (most recent on top)
There's no one left. Brain drain complete.
If this were to happen it’s a perfect example of a “shocked but not surprised” scenario
It's not even a margin or cash flow, the main issue with GF is the absence of product pipeline which is a death spell for high tech. The company had 100% failure rate of homegrown product development due to dysfunctional and inept management which is expected when you promote yes men (and women) instead of qualified people who may have their own opinion
@1fid, GF will get peanuts from the US Chips Act. Why should they get anything? They have no plans to build new fabs in the US. They are outsourcing jobs continuously to low cost geos. The techs they make in US can be made already in other fabs in US. So tell me why GF should get any US Chips Act money? Give it to companies like Intel who want to build leading edge fabs. Give it to companies like TI to secure automotive supply at their fabs. Give it to companies like Micron to have leadership in memory produced in US. Sorry but GF brings nothing to the table. Now if they were smart (which they are not) they would make a play for expanding and building a new fab in Malta for "leading edge RF" capabilities, this is a niche not covered in US today but GF is sinking the RF business that was once so mighty when they got it from IBM. Net here, GF execs have no vision, they are brain dead and will miss out on US Chips Bill opportunity.
No CHIPs act has been granted as of yet
It won't be that fast of a death. But the way the company is going it will be a slow death. The biggest problem GF has is gross margins basically for every dollar they spend they make 20 cents to 30 cents in profit back whereas UMC and TSMC make 40-50cents profit for every dollar they spend. In a capital-intensive business, like foundries/fabs are, one has to have cash to reinvest back into business to enable keeping up with industry. Each quarter GF's gross margins are 20-30% vs. competition 40-50% they fall further behind. Eventually you fall far enough behind that you have zero differentiation and then you are a bottom feeder going after low cost, low margin designs/opportunities. The only way you get out of this continued downfall is to bring in an infusion of investment to fund the differentiation of technologies. With the IPO we thought this would happen but instead the execs just pocketed that money. The way GF is heading the writing is on the wall, things will collapse. There are two ways out here: 1. Make the needed investments to differentiate, take the financial hit for the next 1-2 years to do this or 2. sell off to Intel for example and let them make the differentiation investments. Either way the CEO and his minions need to go as well otherwise they will find a way not to differentiate and pad their pockets even more.
They just partnered with Lockheed Martin and were granted money through the CHIPS act. Bankruptcy how, are you daft?
Still, the largest issue is the executives and CEO pocketing copius amounts of cash while also paying McKinsey consultants for data that is not needed.
intel is not firing on all cylinders
apple has a china problem
china also will just copy nvidia's work
No way! But if true definitely no packages for layoffs after as GF would be protected by bankruptcy status.
Strong A17 Pro, M3 Sales Mean Apple Will Help TSMC Generate $3.1 Billion In Revenue From 3nm Orders Alone In 2023, According To New Estimations
https://wccftech.com/strong-a17-pro-and-m3-sales-contribute-to-tsmc-2023-3nm-chip-revenue/
https://www.digitimes.com/news/a20231031PD220/3nm-iphone-15-tsmc.html
ON Semiconductor shares fell 21% Monday after the company offered weaker-than-expected guidance for its fourth quarter.
The company said it expects revenue to fall between $1.95 billion and $2.05 billion, while Wall Street was expecting $2.18 billion.
Analysts said Monday that investors should "remain cautious."
https://www.cnbc.com/2023/10/30/shares-of-on-semiconductor-fall-20percent-on-bad-q4-guidance.html
Yeah right... like that is going to happen. Why post such nonsense?
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