Thread regarding GlobalFoundries layoffs

So GF and TSMC just settled. Maybe GF's concern was no one would buy them if they figured they would get sued by TSMC for IP infringement. So this might have been GF's intent all along. Still not sure who buys them but it will be interesting if there are any buyers now.

https://www.bizjournals.com/albany/news/2019/10/29/globalfoundries-resolves-patent-battle-with-tsmc.html?ana=yahoo&yptr=yahoo

Apparently you have little understanding of bankruptcy, business, or much else I would guess. The person "obsessed" with bankruptcy (different guy - I'm not a fab worker) could be right. You, however, are wrong. Samsung is not going to buy this plant for a hypothetical $0.30 on the dollar when they could get it for $0.05, free and clear, with no negotiation. That's if they even want it. And that's a gigantic "IF", as Samsung builds their own. As for accounting "funny money"? Might want to stay in your lane there, pal. EBITDA, GloFo's preferred method of showing "profitability", is the original "funny money" accounting. If we have to toss a bunch of legit expenses to be "profitable", we aren't. We're using every trick in the book to keep this ship afloat. Mubadala wants us gone from their portfolio. GloFo could absolutely file bankruptcy, as we're one legal entity in their portfolio. If they don't file, they'll continue life as patent trolls, I suppose. This whole experience has been good for me, as a future accountant who never expected to stay here anyway. It's been a real education on what not to do.

Do you even understand what bankruptcy is? I am no big fan of GF but your obsession with bankruptcy is pretty sad. Who are they in debt to that would constitute bankruptcy? Yes, the books are red in debt but it is all just "funny money" that Mubadala is using for accounting purposes. Bankruptcy would Abu Dhabi is closing down all of its businesses which isn't happening.

Likely the scenario is that Sam and the Prince are in discussions on price and personnel with the state of NY watching closely. I would expect if this happens you see most of high level management jumping off the 3rd floor with their Golden parachutes and a lot of middle managers SOL. It is far far cheaper to pay off a few a**holes than it is to let the whole fab shutdown and then try to bring it back up and restaff it. I am sure that the Sheiks would rather get 30 cents on the dollar back in a sale than 5 cents or so if a total shutdown were to happen.

Lines appear to be full, but if sales aren't covering expenses "full" isn't a good indicator of anything. Also with Huawei gone as a customer, lines probably won't be full for long. Don't know about the other fans. I think the next move is filing bankruptcy, with someone trying to buy the fabs free and clear out of bankruptcy. No one wants to buy the current management team, and post-acquisition firings can get messy and costly.

Hey folks, can you update us on true status of GF?

Is Malta line empty or full?
Are FDX lines empty or full?
Are other fabs empty or full?
What happened to Chengdu massive Fab?

What is the truth of things there?

I believe the end is near for the GloFo. This is the move for someone in hospice care. I assume these are the IBM patents that IBM paid GF to take?

GF just got several million dollara of free advertising. Now when they go public people will know the name. Publicity is publicity

Yeah forget the box. There will just be chains and locks on the door handles. If you want you stuff back, there'll be an estate sale a few weeks later. Cash and carry only!

My guess is McK and TC haven't offloaded the fabs, so now they're trying to squeeze what dollars they can out of the company's patents. It's obvious the fabs are worthless, or at least not worth what GF wants for them, so why not patent troll?

We should take bets on how this will play out. Is it going to be a slow shut down, or will everyone just show up to find the lines have been shut down and given a box to clean out their desk? I am betting on scenario two.

I can just picture one of those big banners for a Going Out of Business sale. Everything must go!! This is just PR for selling the non fab stuff. Everyone knows this will go nowhere and a healthy company wouldnt be doing it.

Best Guess is they are hoping for quick settlement and cross-licensing agreement where TSMC et al maybe give them some wafer starts as a second source supplier. It would have to be at 14 nm anyway so the is probably a puncher's chance TSMC bites. Else TSMC can just litigate this for years which GF can't afford. No way any court actually stops shipments.

New customers? GloFo is suing everyone. No one currently getting sued is going to want to go near them after this. And if these new customers are users of differentiated products, then why the suit over extremely vague IP that isn't used in your core business? There is no logic behind this. Successful companies don't do this. Dude was right about GloFo following Rambus down the patent troll path.

This is normal in any business that has patents. You should protect your IP, as it creates the differentiators needed to maintain margin and get new customers.

Just hope this is not a distraction to the core business. We are ar a point where we need focus on completing a successful pivot.

This is the action of a company in its death throes. Obviously they know this will go nowhere, and that suing their customers will harm their fab business, which means that GF has decided its fab days are at an end. It failed to sell the three remaining fabs and I suppose this suit is to try to force buyers for the fabs, and/or have GF continue life as a patent troll.

What is sad is that I know coworkers who are oblivious to what is really going on. Some have purchased houses, some fought to get back into GF after the layoffs last year. It's not hard to see that this train has run out of track. If I my family wasn't here, I would leave. Now.

Yes, I was about to post on this. They better know what they are doing. They have money for lawyers. Hope its not a frivolous lawsuit. What kind of a company sure their own customers?