An industry holds its breath as GlobalFoundries goes public - i ...

Reports of the upcoming IPO for privately-owned GlobalFoundries presents an ... since the start of 2019, making up 38% of their revenue. Thelatestnewsinthesemiconductorindustryatyourfingertips!DownloadtheappSearchbykeywordsSearchOrchooseyourthematic#BatteryAndEnergyManagement#CompoundSemiconductorsAndEmergingSubstrates#ComputingAndSoftware#Display#Imaging#Lighting#Memory#Microfluidics#Packaging#Photonics#PowerElectronics#RFDevicesAndTechnology#SemiconductorManufacturing#SensingReportsoftheupcomingIPOforprivately-ownedGlobalFoundriespresentsanopportunitytoexaminethispure-playfoundry’splacementintheever-dynamicsemiconductorecosystem. It’simportanttotakeastepbacktounderstandGlobalFoundries’originstory.YoleDéveloppement‘sanalysts,withontheirtechnical&marketexpertisegiveyoutoday,theirvisionofthisnewevent.Theiranalysisisbasedonbothquarterlymarketmonitors,ApplicationProcessorandMicrocontroller(comingsoon)andbothreports,EmergingNon-VolatileMemoriesandStatusoftheMemoryIndustry.GlobalFoundrieswasspunoutofAMDin2008whentheparentcompanydecidedtochangebusinessmodelsandgofabless.MubadalaInvestmentCompany,throughtheirsubsidiaryAdvancedTechnologyInvestmentCompany(ATIC),agreedtopay$700milliontoincreasetheirstaketomajorityownershipinthenewlyformedfoundrycompany.ThisnewentitywasformallynamedGlobalFoundriesinMarchof2009.Overtimethecompanygrewthroughtwomajoracquisitions,bringingCharteredSemiconductor(2010)andIBM’smicroelectronicsbusiness(2015)intothefold.MorerecentlyGlobalFoundrieshastakenstepstoreduceitsfootprint,dealingtheASICbusiness(namedAvera)toMarvellandoneofitsUS-based300mmplantstoonsemi(formerlyOnSemiconductor)in2019.Justearlierthisyear,therewerereportsofchipgiantIntellookingatadealtoacquireGlobalFoundriesfor$30billion,butthoseweredismissedas“speculation”byGlobalFoundriesCEOTomCaulfield,leadingtotheupcomingIPO.Sittingtoday,GlobalFoundriesispositionedwithanumberofstrengthsintheircorner. AsamainsupplierofSilicon-on-Insulator(SOI)andFully-DepletedSOI(FD-SOI)fabricationtechnologies,GlobalFoundriesiskeyinprovidinglow-powerlogicandinleading-edgeRFfabricationcapabilities,drivenbythegrowingsemiconductordemandinIoT,Automotive,andCommunications. Onthebackendsideofmanufacturing,GlobalFoundrieshasanarrayofadvancedpackagingcapabilitiessuchasFCCSPandFCBGA,aswellastheabilitytomanufactureSiliconinterposersforTSVinterconnection.Intermsofscale,thecompanyoperateswithacapacitygreaterthan170Kwaferstartspermonth(WSPM)of300mmand100KWPMof200mm,placingGlobalFoundriesinthetop5offoundryservicesprovidersworldwide(Source:SEMIWorldFabForecastreport,2021). Thecompanyhasstrategicrelationshipswithsomeofthelargestplayersinsemiconductorstoday:along-runningwafersupplyagreementwithAMDandproductionofIBM’sZ-processorfamilyhaveprovidedstability. WithmanufacturinglocatedinEurope,US,andSingapore,GlobalFoundriesisestablishedinregionsthathaveshownrecentappetiteforindustry-friendlypoliciesandinvestments.GlobalFoundriesisnotwithoutsomeweaknesses,someofwhichsetitapartfromtheleadingfoundrycompaniesTSMCandSamsung. In2018,GlobalFoundriessuspendedplansondevelopmentof7nm,relegatingthecompanytothenon-leadingedgeofsemiconductormanufacturing. ThishascausedadeclineinbusinessfromamaincustomerasAMDhasmoveditsdesignsaheadto7nmforZen2products.HighperformancecomputingproductswilltendtofollowMoore’sLawwiththenextgenerationalwaysseekingoutsmallerprocessnodes.Therefore,ifGlobalFoundriesstopsnodeshrinkat12nm,theyaretakingthemselvesoutoftherunningofalargeportionoffoundrybusiness.Forexample,TSMChasearnedover$40billionfrom7nmand5nmprocessingsincethestartof2019,makingup38%oftheirrevenue.OneaspectthathindersGlobalFoundriesistheirscalerelativetotherestofthefoundryindustry:thecompanymakesupjust6%ofthewafercapacityofthesemiconductorfoundriestrackedbySEMI.AswelookforwardonGlobalFoundriesprospects,weseesomeopportunities.Assensors,RF,MEMS,andthebroader‘More-than-Moore’businesscontinuestothriveandgrow,thereisstillgrowingdemandforthetechnologiesthatGlobalFoundriescanservice.AccordingtoYole’sanalyses,theMore-than-Moorewaferproductionisexpectedtogrowto88millionequivalent12’’wafersby2026withacompoundannualgrowthrate(CAGR)of~5%.Withintheembeddedmemoryspace,chipdesignersarelookingforhigherdensity,lowerpowerconsumption,andhighperformance,forwhichGlobalFoundrieshasawell-positionedsolution.ThecompanyisamongthefirsttointegrateembeddedMagnetoresistiveRAM(eMRAM)asaneFlashreplacement.ItisalsothefoundrypartneroftheleadingMRAMplayerEverspinTechnologies,manufacturingdiscrete1GbMRAMsolutionson28nmwithplanstoscaleto12nm. GlobalFoundrieshasalsolicensedtheAdesto’sCBRAMTMtechnologyfromDialogSemiconductor,furtherexpandingitsnon-volatilememoryofferingforprocessnodesbeyond28nm,whichistypicallyconsideredtobethescalinglimitforFlash-basedembeddedmemory.Finally,inthecurrentenvironmentofscarcesemiconductorcapacity,premiumsshouldbeplacedonanyavailablefoundrycapacity,evenatlaggingprocessnodesandatthesmallerendofmarketsharelikethatofGlobalFoundries.ThepresentsituationandGlobalFoundries’positionbringsomethreatsaswell.Spurredonbythesemiconductorshortage,newinvestmentsinfoundrycapacityareontheirwaynear-termandinthecomingdecade:$20billionannouncedfromIntelnear-termforthenewIntelFoundryServicesfabinArizona,$100billionexpectedfromTSMCoverthenextthreeyears,and$151billionfromSamsungthrough2030.Thisnewcapacitywillnotjustapplytothesub-10nmrealmwhereGlobalFoundriesmaywanttocompetebutwillalsogohead-to-headwithcapacityrunningonlaggingnodes,likethatofpresent-dayGlobalFoundries.Questionsremainaboutthefirm’sabilitytoinvestcompetitivelyinsuchacapitallyintensiveenvironment.Inthepushtogotowards10nmor7nm(orbeyond),GlobalFoundriesfindsitselfinalegaltanglewithoneofitsmajorpartners.Thecosttoinvestindeveloping10nmand7nmisattherootofduelinglawsuitsfiledearlierin2021betweenGlobalFoundriesandIBM,puttingthestatusofthatrelationshipinjeopardy. Lastly,US-ChinatradetensionshavecreatedfurthermotivationsforChineseOEMsandODMstoworkwithChina’sfoundrySMIC,whohassimilarscaleandtechnologypositionasGlobalFoundries.ThiscanhinderGlobalFoundries’abilitytoattractcustomersfromwithintheChinesesphereofinfluence.Thesemiconductorindustryisalwaysdynamic,particularlywithinthefabless/foundryrelationships.AsGlobalFoundrieslookstogopublic,therearevariousfactorsinthecompany’sfavorwhileothersposechallenges.HowwillthecapitalmarketsvalueanewlypublicGlobalFoundries?Willtherebesufficientcapitalraisedforthefirmtofurthermeetgrowingsemiconductordemandand/ortakesomelargestrategicsteps?HowwillthefoundryindustrypeersreacttoanychangesinGlobalFoundries’positioning?Afterayearthathasseensemiconductorsupplychainsstrainedtonewlevels,theseareamongthequestionsthatanalystsatYoleandelsewherewillbeaskingas2021turnsinto2022.AbouttheauthorsJohnLorenz isaTechnologyandMarketAnalyst,Computing&SoftwarewithintheSemiconductor,Memory&ComputingdivisionatYoleDéveloppement(Yole),partofYoleGroupofCompanies. Johnisengagedinthedevelopmentofmarketandtechnologymonitorsforthelogicsegmentofadvancedsemiconductors,withaninitialfocusonprocessors. PriortojoiningYole,JohnheldvarioustechnicalandstrategicrolesatMicronTechnology.Ontheengineeringside,hisrolesincludedthinfilmprocessdevelopmentandmanufacturingintegrationonDRAM,NAND,andemergingmemorytechnologiesandindustrialengineering/factoryphysicsfortheR&Dfab. Onthestrategicside,Johnranthememoryindustrysupply&capexmodelforcorporatestrategy/marketintelligenceandestablishedtheindustryfront-endcostingmodelwithinstrategicfinance. JohnhasaBachelorofSciencedegreeinMechanicalEngineeringfromtheUniversityofIllinoisUrbana-Champaign(USA),withafocusonMEMSdevices.TomHackenberg isaPrincipalAnalystforComputingandSoftwareintheSemiconductor,MemoryandComputingDivisionatYoleDéveloppement(Yole).Tomisengagedindevelopingprocessormarketmonitorsandresearchintorelatedtechnologytrends.HeiscurrentlyfocusedonlowandultralowpowersolutionssuchasMCUs.Tomisanindustryleadingexpertwithmorethanadecade’sexperiencereportingonmarketsforsemiconductorprocessorsincludingCPUs,GPUs,MPUs,MCUs,SoCASICs&ASSPs,FPGAsandconfigurableprocessors.Tomisalsowell-versedinrelatedtechnologytrendsincludingIoT,heterogeneousprocessing,chiplets,AIandedgecomputing.PriortojoiningYole,TomwasaprincipalanalystatOMDIA,IHSMarkitandbeganprocessormarketresearchin2006forIMSResearch.Heworkedwithmarket-leadingprocessorsuppliersdevelopingbothsyndicatedandcustomresearch.TomholdsaBSECEfromtheUniversityofTexasatAustinspecializinginProcessorsandFPGAs.SimoneBertolazzi,PhDisaSeniorTechnology&Marketanalyst,Memory,atYoleDéveloppement(Yole),workingwiththeSemiconductor,Memory&Computingdivision.AsmemberoftheYole’smemoryteam,hecontributesonaday-to-daybasistotheanalysisofnonvolatilememorymarketsandtechnologies,theirrelatedmaterialsandfabricationprocesses.ThisarticlehasbeenwrittenincollaborationwithAdrienSanchez,Technology&MarketAnalyst,Computing&Software,andEmilieJolivet,DirectoroftheSemiconductor,Memory&ComputingDivisionatYole.Relatedreports&monitorsProcessorQuarterlyMarketMonitorForthefirsttime,theprocessormonitorisincludingFPGA,CPU,GPU,andAPUincludingalltheIDMs,Fablesscompanies,andFoundriesinthebusiness.MicrocontrollerQuarterlyMarketMonitorWillbeavailablesoon…EmergingNon-VolatileMemoryEmbeddedNon-VolatileMemory(NVM)readiestotakeoffdrivenbylow-powerapplications.Stand-aloneNVMcontinuesitsjourneytowardmassadoption,despiteecosystemslowdowns.StatusoftheMemoryIndustryNANDconsolidation,China’sbetontwokeyplayers,theriseoftheCXLinterface:asthememorybusinessnarrows,themarketkeepsgrowingandispoisedtoexceed$200billionin2026.Source:http://www.yole.frRelatedpresentationsLogin toaccesstoourAnalysts'presentationsonallexpertise#ComputingAndSoftware#Memory#SemiconductorManufacturingCetarticlevousaplu?Partagez-lesurvosréseauxsociauxRelatedReportsandMonitors#ComputingAndSoftwareSeptember2021ProcessorQuarterlyMarketMonitorMonitors#ComputingAndSoftwareDecember2021CMOSImageSensorQuarterlyMarketMonitorMonitors#SemiconductorManufacturingDecember2021ConsumereCompassComparison2021ReverseCosting-Structural,Process&CostReportViewallproductsSignupforourweeklye-NewsletterEnteremailhereSignupRelatednewsDecember16,2021#CompoundSemiconductorsAndEmergingSubstrates#PowerElectronicsTheBiden-⁠HarriselectricvehiclechargingactionplanDecembe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