Intel Corp (INTC)

[Tim May]

Maybe, but GloFo is licensing the process from Samsung (not a good sign to license a cutting-edge process; better than not having it at all, but usually a sign of technical or financial weakness).

http://www.eetimes.com/document.asp?doc_id=1321974

"Samsung qualified its 14 nm process in February and has multiple customer chips in production in hopes of volume shipments by the end of the year. GlobalFoundries will qualify the process this year and provide volume production in early 2015."

A look at this estimate (it's the Wikipedia, so beware) of fabs is illuminating:

http://en.wikipedia.org/wiki/List_of_semiconductor_fabrication_plants

It shows Malta (New York) as GloFo's 28 nm fab, versus multiple fabs from Intel in the process nodes of interest going forward. Ditto for Samsung and TSMC.

We've been hearing that Leixlip (Ireland) is having problems transferring the process and so will be retaining 360 workers from Israel to assist. (http://www.globes.co.il/en/article-intel-transferring-360-israeli-employees-to-ireland-1000955037)

Perhaps Samsung will similarly be sending hundreds of Koreans to upstate New York.

Of course the experiences described here may not apply to the Samsung/GloFo transfer. Lots of things could be different. But I think it bears watching for signs of slippage. And, in any case, it's one site, not the 3 sites (Hillsboro, Chandler) plus maybe Leixlip in the next year or two (from the news article above about the 24 month assignment : "The employees have been told they will be required to remain in Ireland for 12-24 months.")


--Tim May