Global Foundries to be sold, might have implications for AMD too

[zMeul]

source: http://blog.timesunion.com/business/sale-of-globalfoundries-could-have-impact-on-amd/71010/

 

this is a bit old and sorry if it has been already covered

 

The government of Abu Dhabi is looking to sell GlobalFoundries — including its Fab 8 computer chip factory in Malta — in a deal valued at between $15 billion and $20 billion, Bloomberg News reported Tuesday.

 

Bloomberg said the potential sale is a result of the oil emirate's need to raise cash and reduce spending as global oil prices have plummeted. GlobalFoundries is owned by Mubadala Development Co., a state-owned investment fund in Abu Dhabi.

 

the implications are huge if Mubadala plans to exit semiconductor market, they may also plan to sell their stake in AMD (18%)

the likely candidate to buy GloFo is Samsung, and it's possible for them to acquire those AMD shares too

 

another candidate, although not likely, is Intel - if Intel takes a stake in AMD stock, it will be tremendous

 

a 3rd candidate would be the chinese Tsinghua Unigroup - they tried to buy Micro last summer for 23 billion $

[themaniac]

another candidate, although not likely, is Intel - if intel takes a stake in AMD stock, it will be tremendous

i was thinking that while reading it

[AresKrieger]

18% is a rather large stake, though that may not be in the deal, but the fact that global foundries is selling is big enough news as it is.

[Prysin]

this makes no sense, as AMD sold themselves almost completely out of GloFo....

 

AMD only holds a minority share, if anything. AMD sold GloFo years ago

[asim1999]

this makes no sense, as AMD sold themselves almost completely out of GloFo....

 

AMD only holds a minority share, if anything. AMD sold GloFo years ago

I think they sold it to IBM

[Prysin]

I think they sold it to IBM

yup.... AMD still holds a minute share, but not enough to even remotely have any majority vote

[VagabondWraith]

zMuel can't stand a positive AMD 400 series thread; decides to create a thread to put AMD in a negative light.

Go figure.

[TetraSky]

I thought AMD had already separated itself from GlobalFoundries?

[zMeul]

I thought AMD had already separated itself from GlobalFoundries?

can you explain what are you talking about?! AMD still goes to GloFo for their GPUs, CPUs and APUs

[zMeul]

zMuel zmeul can't stand a positive AMD 400 series thread

positive?!!? you didn't knew Radeon 4xx series was due in 2016?! 

come on!

[TorqueS]

zMuel can't stand a positive AMD 400 series thread; decides to create a thread to put AMD in a negative light.

Go figure.

I don't see how this is a deliberate "bad light" post. It's an economical state of their chip manufacturing process company.

 

Really, there's no reason to start a flame war.

[BonSie]

can you explain what are you talking about?! AMD still goes to GloFo for their GPUs, CPUs and APUs

It used to be an actual part of AMD, but they spinned it off and sold it.

It's no longer an actual part of them.

[zMeul]

It used to be an actual part of AMD, but they spinned it off and sold it.

It's no longer an actual part of them.

that was not the point of the topic  :huh:

 

Mubadala Development Co. owns Global Foundries, they (Mubadala Development Co.) also have 18% in AMD's stock

it's quite possible Mubadala Development Co. might sell both interests

[-BirdiE-]

this makes no sense, as AMD sold themselves almost completely out of GloFo....

 

AMD only holds a minority share, if anything. AMD sold GloFo years ago

 

I feel like you're getting things confused. It says that GloFo is selling their AMD shares, not AMD is selling GloFo shares. Just because AMD sold most of their GloFo shares doesn't mean GloFo sold their AMD shares.

[Mr_Troll]

keyword might..... and its a zmeul like might... so 40/60 chance its going to happen

[NAP51DMustang]

I don't see how this is a deliberate "bad light" post. It's an economical state of their chip manufacturing process company.

 

Really, there's no reason to start a flame war.

it's a shitpost because it has nothing to do with AMD since AMD and GloFo separated like a year ago.

[themaniac]

it's a shitpost because it has nothing to do with AMD since AMD and GloFo separated like a year ago.

its not a shit post just because amd has nothing to do with it, which they might doesn't make it a shitpost

[TorqueS]

it's a shitpost because it has nothing to do with AMD since AMD and GloFo separated like a year ago.

It basically doesn't involve AMD mate. It's about GloFo...and its economy. 

The fact that in involves some AMD shares, yeah you might say it's a subtle way to make it look bad. But I don't think that's the case here and even if it is, I don't care, I came for the main news: "GloFo to be sold."

[Notional]

Why would this implicate AMD in any way? You think a new owner would remove GloFo's biggest customer? So dumb.

[HalGameGuru]

I wonder if he meant "impact" instead of implicate?

 

I find more interesting the Abu Dhabi side of this. They got into GloFo because they wanted to get semiconductor manufacturing IN the middle east. Intel in Israel doesn't count for them. A big sticking point for a lot of the more ambitious Muslim nations in that region has been getting real, tangible, manufacturing and production capacity domestically. It makes me wonder how that drive will ever come to fruition if whenever oil drops in price they hedge their bets on oil by removing ties to the manufacturing they want to move in to. Seems like this is the exact situation making them want to not be reliant upon oil and wanting to be able to produce something else to provide to the world for trade and profit. But, as soon as the very thing they fear happening to drive this desire DOES OCCUR it causes them to dump their survival plan and try to bail out the sinking boat? 

[Castdeath97]

positive?!!? you didn't knew Radeon 4xx series was due in 2016?! 

come on!

Pascal is also due on Q2-Q3 2016.

[weez]

So how does this implicate AMD?

[zMeul]

So how does this implicate AMD?

1. AMD's fabrication is handled by GloFo
2. Mubadala Development Co. has 18% in AMD, and it's possible they'll sell that too

[Tomsen]

Selling GloFo does bring in some quick bucks. However, it does narrow in their income stream.

They want to become as little depended on their oil reserve as possible.

 

Selling their stocks at AMD, can bring AMD in for some instability in the short term.

[Prysin]

can you explain what are you talking about?! AMD still goes to GloFo for their GPUs, CPUs and APUs

GPUs are handled by TSCM, just like Nvidia

 

APUs/CPUs are often GloFo because that is what they are "good" at producing.