Money Mongoose

7nm shake-up at GlobalFoundries/TSMC

GlobalFoundries has thrown in the towel and stopped development of its 7nm process. The move leaves TSMC, Samsung and Intel as the only companies on the cutting edge of semi-conductor fabrication.

Who wins?

On the face of it TSMC is left with Samsung as a duopoly provider of cutting edge fabrication since Intel produces primarily only for itself. Although Samsung keeps its foundry operations separate, it potentially competes with its foundry customers, a situation some may find uncomfortable.

Shares in TSMC shares rose by over 3% on Wednesday to their highest point since March/April 2018.

Who loses?

AMD and other companies now have reduced choice and potential capacity constraints in the future as well as a weakened hand in negotiations.


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.