News
 

Bookmark and Share

(0) 

Industry analysts believe that acquisition of Chartered Semiconductor Manufacturing by Advanced Technology Investment Company and merging it with Globalfoundries, a joint venture between ATIC and Advanced Micro Devices, will allow Globalfoundries to gain new customers and revenue streams. This may provide additional profit to AMD, some believe. However, Globalfoundries is still much smaller than TSMC, which is a threat.

“We view the (Chartered) transaction as a strategic positive for Globalfoundries, which will acquire customer relationships and manufacturing capabilities in both 8” and 12” fabrication. The ATIC/Chartered Semiconductor transaction is a net positive for AMD as it could likely help moderate loss levels at AMD consolidated, as Global Foundries broadens its customer base over time,” said analyst Tim Like for Barclays Capital, reports Reuters news-agency.

“In order to be competitive, a foundry needs to be able to offer a broad variety of processes, interfaces and libraries. This is something that has not been available at Globalfoundries, given its background as a purely high-end processor manufacturing entity,” said industry consultant Harald Eggers, a former manager at Infineon, reports EETimes web-site.

However, everything may not be that positive. Globalfoundries has two customers: AMD and STMicroelectronics and is losing money. Even though Chartered has many more clients, it has been losing money for the past years. As a result, ATIC and AMD are likely to continue losing money on manufacturing operations. Moreover, in terms of market share, Globalfoundries will still be well behind market leader Taiwan Semiconductor Manufacturing Company.

“I think it is risky. Chartered is just kind of a little militia fighting against a full-fledged army,” said Wedbush Morgan Securities' analyst Patrick Wang.

Some analysts even claim that even with Chartered onboard, Globalfoundries will have hard times competing with United Microelectronics Corp.

“TSMC leadership in the foundry business appears unassailable, with our checks indicating its process development efforts are a year or more ahead of the competition and support is coming from the strongest of potential partners including Intel, Qualcomm, NetLogic, and Nvidia. Beyond TSMC, most companies we follow consistently name UMC as a key strategic second source," said JMP Securities analyst Alex Gauna.

Moreover, some the former manager at Infineon even has doubts that the integration of Chartered into Globalfoundries will go smoothly.

“There are cultural and mental differences and other unknown factors. I don't know if the integration of the two will run smoothly, but this will be an essential factor. It boils down to the question if there will be emotional winners and losers in the process,” said Mr. Eggers.

Tags: ATIC, Globalfoundries, Chartered, TSMC, UMC, AMD, Semiconductor, Business

Discussion

Comments currently: 0

Add your Comment




Related news

Latest News

Monday, April 14, 2014

8:23 am | Microsoft Vows to Release Xbox 360 Emulator for Xbox One. Microsoft Xbox One May Gain Compatibility with Xbox 360 Games

Tuesday, April 1, 2014

10:39 am | Microsoft Reveals Kinect for Windows v2 Hardware. Launch of New Kinect for Windows Approaches

Tuesday, March 25, 2014

1:57 pm | Facebook to Acquire Virtual Reality Pioneer, Oculus VR. Facebook Considers Virtual Reality as Next-Gen Social Platform

1:35 pm | Intel Acquires Maker of Wearable Computing Devices. Basis Science Becomes Fully-Owned Subsidiary of Intel

Monday, March 24, 2014

10:53 pm | Global UHD TV Shipments Total 1.6 Million Units in 2013 – Analysts. China Ahead of the Whole World with 4K TV Adoption

10:40 pm | Crytek to Adopt AMD Mantle Mantle API for CryEngine. Leading Game Developer Adopts AMD Mantle

9:08 pm | Microsoft Unleashes DirectX 12: One API for PCs, Mobile Gadgets and Xbox One. Microsoft Promises Increased Performance, New Features with DirectX 12

3:33 pm | PowerVR Wizard: Imagination Reveals World’s First Ray-Tracing GPU IP for Mobile Devices. Imagination Technologies Brings Ray-Tracing, Hybrid Rendering Modes to Smartphones and Tablets

2:00 pm | Nokia Now Expects to Close Deal with Microsoft in Q2. Sale of Nokia’s Division to Close Next Month