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Analysis: Outpaced by TSMC, GloFo cuts its cloth
August 28, 2018 // By Peter Clarke, eeNews
Globalfoundries' lack of business success at the leading-edge of FinFET foundry work means it can no longer afford to pursue a twin FinFET and FDSOI development strategy and is stopping all 7nm development. Putting it simply Globalfoundries has been outpaced by TSMC and as a result has had to take a long hard look at itself in the mirror. It has decided to cut its cloth according to its means. But will its decision to go "differentiated" ultimately bring a reward?
Globalfoundries has also done what may seem illogical and said it intends to invent the fab-lite foundry. That is the implication of dividing Globalfoundries' business between a foundry part and an ASIC development business that is free to go other foundries at 7nm and beyond. What we do not yet know is how significant a business that will be as a proportion of the whole. It seems unusual and may receive double-takes from potential customers before its receives their business.
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