English
GloFo and the end of easy money
Peter Clarke, EETimes
11/21/2012 12:26 PM EST
Globalfoundries is only a little over three years old, but is already the world's second largest pure-play foundry, with estimated annual sales of about $4.5 billion in 2012. All seems to be going well.
The company was initially formed by bringing together the manufacturing capabilities of a somewhat distressed processor manufacturing company Advanced Micro Devices, that was looking to go fabless, and the oil riches of the Gulf state of Abu Dhabi. Back in 2008, Abu Dhabi had a plan.
The billions of dollars Abu Dhabi has provided – an investment in adapting the emirate to a post oil-economy world – that has allowed Globalfoundries (Milpitas, Calif.) to make such rapid progress. But it now seems that the time of easy money – and we are talking of well in excess of $10 billion – could be coming to an end.
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