The result of this spin-off is the creation of a wholly owned subsidiary called Avera Semiconductor. Avera will remain aligned with GF’s technology, as its main task will be the cooperation with GF's customers. But the company is expected to grow, as it will also cooperate with other semiconductor manufacturers. I was hoping to get some thoughts on this move.
https://www.anandtech.com/show/13541/globalfoundries-establishes-avera-semiconductor
I said "what might be profitable". Mubadala wants the fabs gone and they're hoping for a rescue with ASICs. It doesn't mean ASICs will be a winner. I don't think it will, but I am not at Mubadala where they seem pretty blind to reality.
To the point from "A SIC puppy" a.o., that past performance indicates future results –
Avera Semi is the same old IBM Microelectronics business that IBM paid 1.5 Billons to get rid off back in 2015. The strongest assets used to be IBM experts with know-how/IP/patents they were generating, the worst liability – IBM legacy management. The assets are nearly destroyed leaving top-heavy Avera lifeboat out to the stormy see of ASIC competition. It’s yet another expensive U-turn (AKA pivot) to undo extensive One-Company consolidation that was still ongoing.
You’ll figure out the net effect.
I think Mubadala is out of the semiconductor business. If you look at their holdings, they've made no move in electronics technology since the IBM acquisition in 2015. I do think ASICs is likely to fetch more as a separate unit than as part of the GF "package" and it is likely to have more interested buyers sooner, so I think that is the reason it was split off first.
You do however contradict yourself by claiming that IBM leadership is what is sending GF to the bottom of the sea and claiming ASICs is better than that, when ASICs is (and always has been) a wholly created entity and entirely run by that same IBM management.
Mubadala is spinning off what might be profitable so they can keep it. They can dump the fabs through sale or closure. They have finally realized that GF leadership is just as horrible as the were at IBM, which paid billions to off load them. ASICs is the lifeboat launched from the Titanic.
Thoughts? Well, I think this move goes along with the whole "GF is prepping itself for sale" narrative. Clearly, ASICs is not a typical part of a foundry and since the ASICs is "trusted" and has DoD customers, clearly it carries a lot more baggage in a sale. By separating out BUs, the company can more easily sell it off in parts to different buyers. I think we will see more of these moves from GF in the coming months. Save for execs (VP and above), employees own no piece of the company that they've worked at for the past x number of years so will not benefit from any sale and many will likely get caught in the "integration" crossfire when sold.
Good luck to all of you who are left.