U.S. Awards $1.5 Billion to
Chipmaker GlobalFoundries
The grant will go toward chips for the auto
and defense industries, and is the largest
award to date from $39 billion in
government funding
12 replies (most recent on top)
@ Down Jones
Yes this is very confusing to investors. We literally just lowered our future forecasts and said our customer base are migrating to newer tech nodes and using up their existing chip supplied….. but guess what we are building a new fab!! Wtf? You just told us your customer base is dwindling but you are building a new fab? Well ok is the new fab doing those new tech nodes then? - Nope! -then again wtf?
And the stock market said
- 50 USD +1.12 (2.10%)
02/20/2024
I hope there is some form of oversight in place to watch where the money goes. And not filling the pockets of our overseas overlords. This does feel like a poisoned chalice. Good news but really will lead to bad things at least for current GF employees. The pressure is now going to be extremely on. We gotta make those US tax payer’s dollars worth it. I hadn’t thought about it until reading some posts here but this does feel like point of no return will it all falls apart. The moment in time you can point to and say this marked the beginning of the end. At least for the current administration. And for us I fear some of us will devote tons of blood sweat and tears to brining up this fab. Work tremendous overtime, etc. For little to no recognition.
GF can't fill Fab8 with product let alone two fabs. And good luck hiring people. It will be filled with Westerwood Global contractors and supplementals.
Chuck Schumer wasting tax payer money to buy votes. Why does a private publicly traded owned by a foreign country, deserve tax money ?
We all know how well this investment is going to go. It’s really a waste of tax payer money. It’s sad really. We will fu-k it up and it’s just another major bullet point at how bad we have become. Critics can point to this and tell us we have no excuse for failing we gave you funding and they would be right. I wish we hadn’t gotten any of this money cause now we are on the hook and have to deliver and in our current state this seems to be impossible.
Also in the news Intel in talks with Biden admin for 10 Billion in Grant and subsides as of 2 days ago. GF is small crippled fish in a very big pond.
Ask yourself, does the Chips act money change the employee culture or SLT at GF? Does that grant money translate into a better work environment or better compensation for the worker? Will your managers suddenly become competent and honest?
Imagine being a GF exec taking home millions of dollars to dismantle the company over a doomed strategy and then receiving millions more to undo that same damage. They must be laughing their as--s off.
Maybe this means you guys will get great raises and stock grants! Or maybe TC will funnel it to overseas expansion and personal stock options. Also, going to cost alot more than 1.5 billion to build a new fab. It will be squandered.
IBM paid GloFo for two Fabs - Fab10 (sold to ONsemi for ~$420M) and Fab9 (Burlington VT, 200mm wafers) - though your point is valid.
GloFo's failed to deliver 10nm FinFET to IBM and the $2B lawsuit is pending for breach of contract.
https://www.business-standard.com/article/pti-stories/ibm-to-pay-usd-1-5b-to-shed-its-chip-division-114102000801_1.html
2014
- 5B was how much IBM paid GF to take the Fishkill NY location, aka Fab10.