AbuDhabi's ATIC eyes full Globalfoundries ownership

[FeRaL]

http://www.legitreviews.com/news/7222/

This was posted as new on the front page of LR.

Not sure I like the sound of this. Anyone remember the oil embargos from the 70s?

[Apoptosis]

any worse than TSMC though?

With AMD out of the ownership it means that Intel can build parts there... I think it's good for the industry really.

[techsmith]

First time I'm hearing about them. It seems they are pretty major.

[Baggs]

Yeah i think it might help them drop the prices a bit more as well since its most likely going to cost them less to make them like that.

[FeRaL]

I would rather seen some other investor come in so it is not owned by a single country. I can see them buying up other fab companies in the future an have it turn into an OPEC like monopoly. OCEC, Organization of Chip Exporting Countries.

[Major_A]

Shame really. American companies/corporations design the chips then outsource them to some third world country to produce them. Like most manufacturing items we need to keep this stuff in our borders. It might cost the end consumer a few more dollars but the trade off is worth it to me.

[ibleet]

Shame really. American companies/corporations design the chips then outsource them to some third world country to produce them. Like most manufacturing items we need to keep this stuff in our borders. It might cost the end consumer a few more dollars but the trade off is worth it to me.

I could not agree more!

[Baggs]

But if they make the hardware closer to Europe, they will be making a larger profit from that since Euro-Dollar balance is something like 1 : 1.5

Doesn't that mean that if the hardware costs less to make and then you sell it to the European market; you make more money?

I do agree with you tho, they should help their own nation. In this case, America.

[Major_A]

I don't look at it as solely a cost situation. More like keeping advanced intellectual property inside the borders.

Example: After WWII American television manufacturers outsourced a lot of the manufacturing to Japan because it was cheaper and they had the technical know-how. How many televisions are made in the US in 2010? That would be a big 0. Vizio is the only American television manufacturer today but they have their stuff built overseas.

[Apoptosis]

IP is the only thing America has going for it... With all the Free Trade things being passed it's going to be tough for patent holders to keep them protected world wide...

Someone asked Obama a question on this yesterday in a town hall meeting in Ohio and it was the perfect question and Obama just said he was working on it basically.

I also saw in a newspaper that 77% of investors think Obama is bad for business... I'd have to agree.

Back on topic... ATIC owning all the fabs is interesting... I wish it was an american company, but who is strong enough in America to buy something like that and have the ability to run it? America is a shell of what it once used to be. Kids are mostly obese/overweight, no one wants to do physical labor, everyone wants to make more than they are worth, kids are testing lower in IQ tests... it's a bad mix right now.

[Major_A]

Who could buy this to keep it in America? How about the chip firms? Hell I would be more open to this if it were even a Canadian or UK firm. All we need is another cartel in the Middle East inflating prices at their will.

Side note to kids in this country. I have 2 nephews (8 and 2) and a niece (5) and they never get to play outside. My sister says because times are different from when we were kids and there are more bad people in the world. My response to that is times are no different there is just more exposure to it. With the Internet, 5000 TV channels, radio, satellite radio, newspapers, magazines, etc... we are just more exposed to it. Hell my 8 year old nephew doesn't even know how to ride a bike. I can't blame him for that but I can blame my sister and brother in law.

[kenc51]

The main reason why all this is gettiing outsourced is down to cost. Intel, IBM, AMD etc. have always done their manufacturing where it's either cheaper to make or where it's cheaper to distribute from.
An example would be Intel in Ireland. Labour is very expensive here, but we have very good education. Intel gets well trained staff, but saves on shipping costs as Ireland is on the edge of Europe.
This is just a logical extension of that. They can now get cheaper labour and be very close to their packaging plants.

You can't be promoting capitalism and not expect the companies to go out and try make as much profit as they can, by any means possible.
Look at IBM and their new plant in New York. This should have cost them Billions more than it should. Instead they cosy up to the local govt and get major tax encentives.
Some would think it's wrong as there's less cash coming back to the treasury, but in fact what has happened it they have created lots of jobs and will be redeveloping the area.
The same thing happened in Ireland with Intel etc. They were given massive tax encentives to come here and after ~10 years or so the lack of taxes didn't matter, as the workforce was so high.

It's a logical procression and soon you won't see any of these companies building new FAB's etc in western countries at all. The existing and new plants won't be retro-fitted for the new tech. and will be resigned to just producing the mass commodity IC's. It will be another 5 yrs or so before it happens.

It will be up to the govt in each country to try entice the companies to build facilities there.

[Major_A]

Pure capitalism is what will eventually kill this country (and other capitalistic nations) and help India and China become the world's unrivaled Super Powers. Unless they declare war on each other and we are supplying both sides with the means to wager war.

It isn't all down to cost these days. If you are a large corporation that goes under all you need to do is ask this administration for money. Then you can use that new found wealth to give all the top level executives large bonuses. After that's done then you can continue to run your company into the ground with no incentive to change your business model.

I understand what you are saying kenc51, I was being a bit satirical.