Yeah Baby! 8.5 Billion Dollar Grant!! Move aside GF, time for the Big Boys to get it done.
https://www.cnbc.com/2024/03/20/intel-awarded-up-to-8point5-billion-from-chips-act-with-loans-available.html
5 replies (most recent on top)
No need to worry about GF, those clowns running the show couldn't run a 7-11 market and turn a profit.
Company has been public for over two years and is still hovering around +$5 over the initial offering
Intel has been maniacally focused on a comeback!!! Their lunch and dinner was eaten by AMD and hyperscalers switching to custom or Arm server designs. Very willing to go to ASML of cutting edge lithograph and invest. Not only does Intel get 8.5B but they also get low interest loans for up to $11B. An $19.5B boost for USA fabs. Five nodes on four years. 14A on the horizon. Going to a chipset based designs to leverage time to market and re-use of previous node designs (cloning AMD approach with more significant interfaces)
GF sold of its ASML lithography tools... fantastic and abandoned its plans for the cutting edge.
GF could have been a parter with Intel. Focused on short term results, not strategic ones.
Intel decided to partner with UMC for legacy nodes.. GF is a loser in this deal also.
Good luck on your journey GF.
G. F. is F!@#!@# for future technologies. But future technologies can always be licensed using donations from the oil&gas profits of the majority investor.
GF really has no "niche" markets where they can make large profit margins, they are just another average or below average foundry. The majority of talent has left GF at this point and those remaining who are skilled are working on leaving. Without leadership technology and without industry leading skills, what do you have left? The answer is GF!! At some point Mubadala is going to regret not selling to Intel for $30B, eventually there will be a fire sale to dump it off as quickly as they can since there is nothing positive on the horizon for GF and the outlook for keeping fabs loaded without differentiated technologies is not good. You made your bed GF, now sleep in it ..... And don't forget to thank your greedy execs (many who have already left) who bled the company dry while not having any forward-looking strategy.
Looks like Mubadala's business judgment fell short. They turned down Intel's offer, banking on a higher valuation post-IPO, but their greed backfired. With Intel's stock doubling since the buyout rumor, it's evident that selling to Intel would have been a win-win. A regrettable decision indeed.