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Tag - GlobalFoundries
IBM is getting out of the chip manufacturing, with the company transferring the bulk of its semiconductor business to GlobalFoundries. However, rather than IBM receiving a large cash influx from selling the chip division, the company is paying GlobalFoundries $1.5 billion over three years, in cash and capital, to take the commercial semiconductor business.
Samsung and Globalfoundries are planning small-scale production of 14nm chips at a New York plant in early 2015, says Digitimes. The firms have reportedly landed deals with two major clients, Apple and Qualcomm. In particular, it's believed that Samsung is aiming to build A9 processors for Apple, but two other companies -- Intel and TSMC -- are also said to be competing for orders.
The Apple iWatch will ship in the third quarter of the year and be manufactured by Quanta Computer, claims Taiwan's Economic Daily News, as quoted by Digitimes. Two other companies, Richtek and TPK, will reportedly be supplying chips and sapphire touch panels. The watch's processor is expected to be developed by Apple, but manufactured by Samsung, which currently handles all iOS processor production. Apple is said to be aiming at having 65 million iWatches assembled by the end of 2014.
The involvement of GlobalFoundries in production of Apple's A-series chips likely has the company serving as "flex capacity" for Samsung, new sources affirm. Under that arrangement, Samsung is expected to pay for use of GlobalFoundries' Malta plant to boost A-series production when the Samsung facility in Austin, Texas is under strain. Although the Austin factory is dedicated mostly to Apple chips, it also helps produce chips for Samsung's own devices; there are, therefore, times when a second plant might be needed to satisfy dual demands.
GlobalFoundries is preparing to manufacture Apple A-series processors at its "Fab 8" plant in Malta, New York, a source tells local publication the Times Union. At present, every A-series chip is produced by Samsung at a factory in Austin, Texas. The source indicates that Samsung will help GlobalFoundries get started with the new project, but it's unknown if GlobalFoundries is being contracted by Samsung or directly by Apple.
GlobalFoundries picked Monday to say it had bought out AMD's remaining stake in its manufacturing. The mutually agreed deal now puts the chip production firm entirely in the control of Advanced Technology Investment Company (ATIC), the company that had originally orchestrated the split. GlobalFoundries could now act independently and wouldn't be bound to making AMD processor, although there were no immediate intentions to stop.
AMD in conversations at the end of the week wouldn't discount the possibility of making ARM-based processors. When pressed by Wired, CTO and former Apple executive Mark Papermaster made the unusual non-denial that "the answer is not no." The company's long-term plans were aiming for a modular chip design that could drop in ARM or another architecture without losing Radeon graphics or other AMD-specific touches.
AMD has revised its third-quarter forecasts, warning investors that revenues and gross margins are expected to fall below original forecasts. The company initially estimated revenue growth of 10 percent, however the numbers are now expected to fall between four and six percent growth due to manufacturing problems.
AMD has reportedly tweaked the supply agreements with its spin-off fabrication company, GlobalFoundries. The new terms are said to be focused on improving production quality, after the manufacturer encountered difficulties with its 32-nanometer chips. AMD now will pay only for working chips, rather than covering for defective components removed from production runs.
Toshiba is reportedly finalizing an outsourcing agreement that will move a portion of the company's chip fabrication to AMD spinoff GlobalFoundries. In an interview with the Japanese paper Nikkei, GlobalFoundries CEO Doug Grose noted that both of the companies are currently in the late stages of negotiating terms for the collaboration.