Ford Dropped a Bombshell on Chips. GlobalFoundries Stock Is Taking Off.

[Tom_C]

I don't see things like semiconductor manufacturing ever being in house to car companies. Or, at least, until Amazon builds everything in our lives.

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[staryoshi]

I don't see things like semiconductor manufacturing ever being in house to car companies. Or, at least, until Amazon builds everything in our lives.

I don't think they should, really. It's OK to not have everything vertically integrated if they are more proactive.

The 2024 Amazon Echo crossover and 2024 Amazon Prime EV will be big hits in 2023

 

[outdoorphotog]

This is the best news since Doritos Cool Ranch

 

[HarryManback]

This might be a modernization for Ford, but GF does NOT use cutting edge technologies. I used to work for GF and was ultimately laid off as a result of them deciding to terminate their 7nm development. It's more modern than what many companies use, but it's still going to be using relatively "old" technology. I'm a bit biased, though, as I've generally worked with cutting edge processing nodes for most of my career.

 

[staryoshi]

This is the best news since Doritos Cool Ranch

Bring back the cool ranch tacos!

 

[outdoorphotog]

Bring back the cool ranch tacos!

I miss 'em too

 

[Langwilliams]

I understand the "global economy" thing but prefer to buy things made in the USA when I can afford them.

Economic principles say cheap, easily manufactured stuff is fine from places like China. It keeps costs down for consumers an frees up a more trained work force for items that require a high degree of precision. Companies that make high performance auto parts are now using China to make the rough product an then bringing into their US facilities for precision finishing by their craftsmen. I've seen the Chinese knock off 5.0 intakes an heads on forums an many are junk.

 

[Fawnbuster]

That's a smart move however the story didn't mention production dates. If the building is up and they just add on then yes that's faster. But if they have to break ground it will be 2 years before the chips hit the market. I was advised that Intel and others started building 2 plants this spring in the states but again it will be another year +or - before it makes a difference.

I understand the costs associated with overseas production but having all your eggs in one basket is dumb.

Several years ago the county switched to Anthem to start January 1, before the year ended the Phillipines got hit by the sunami and Anthems only server was destroyed...so we didn't have cards or web access for 6 weeks going into the new year, no paid claims or RX coverage. Having redundancy would've been smart if it's not sitting next to the main computer. At least have 1 in the same continent your business is in so if you get cut off from a foreign country you can access it. Greed and failure to plan caused this ripple effect worldwide.

 

[Iowa Guy]

Some good news for a change. Looks like Ford made a huge deal that will help them with the chip shortage.

https://www.markettradingessentials...on-chips-globalfoundries-stock-is-taking-off/

it is a good start, however this will not help them for the next 18 months, they will have to build the equipment to make the new chips, they do not have current capacity.

 

[AzScorpion]

it is a good start, however this will not help them for the next 18 months, they will have to build the equipment to make the new chips, they do not have current capacity.

This quote below would seem they already have the ability to make them here. There still might be some start up delays but it sounds like they're already making them here in the US.

Also there are 2-3 other companies who have factories being built here in AZ right now which are supposed to open in 2024.

GlobalFoundries makes semiconductors designed by others. It has manufacturing capacity all over the world, including in the U.S.

 

[SILK]

I can't believe I'm reading a supply chain thread on this forum with well thought out opinions, cogent arguments, and facts.

We are healing.

I recently listened to a podcast on ASML and was blown away by the chip making process and just how much of the market share a single company controls. It was a pretty dense listen but was about an hour of new information to me.

 

[HarryManback]

This quote below would seem they already have the ability to make them here. There still might be some start up delays but it sounds like they're already making them here in the US.

Also there are 2-3 other companies who have factories being built here in AZ right now which are supposed to open in 2024.

The foundries that GF has in the US are mostly older fabs from other companies. They acquired a number of older IBM fabs, and they built a fairly modern facility in NY. The problem is that they don't have much (if any) capacity left.

 

[AzScorpion]

The foundries that GF has in the US are mostly older fabs from other companies. They acquired a number of older IBM fabs, and they built a fairly modern facility in NY. The problem is that they don't have much (if any) capacity left.

I know nothing about that industry but couldn't they revamp a few of those until new ones are up and running? I know it doesn't happen overnight but seems like it would be quicker than building from the ground up and help ease the pain for now. Or are all those needed for production?

 

[HarryManback]

I know nothing about that industry but couldn't they revamp a few of those until new ones are up and running? I know it doesn't happen overnight but seems like it would be quicker than building from the ground up and help ease the pain for now. Or are all those needed for production?

Revamping existing fabs is exactly what they were doing with 7nm. The problem is it still costs hundreds of millions (even into the billions) to upgrade an existing fab to a newer process. And when those fabs are full, you can't just leave your current customers high and dry. They have contractual obligations that they need to meet, so taking any fab off-line for an extended period needs to be done very strategically.

These fabs are very large and very complex. It takes a long time and a lot of work to qualify a new or upgraded fab to be ready for production.

 

[AzScorpion]

Revamping existing fabs is exactly what they were doing with 7nm. The problem is it still costs hundreds of millions (even into the billions) to upgrade an existing fab to a newer process. And when those fabs are full, you can't just leave your current customers high and dry. They have contractual obligations that they need to meet, so taking any fab off-line for an extended period needs to be done very strategically.

These fabs are very large and very complex. It takes a long time and a lot of work to qualify a new or upgraded fab to be ready for production.

Good insight thanks! It's nice to get the 411 from someone who actually know the industry and the process. Being in the home building industry I'm use to things going fairly quickly. But I knew it would be a lot more complex than flipping a house. lol

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