Re: Xilinx, Nvidia raise outsourcing to UMC, TSMC
That article sounds like a garbled translation of something.
According to the article
IBM's prices are too high (compared to UMC's partner - maybe they should have checked this out earlier?)
They have insufficient capacity (though UMC is over 90% booked)
They aren't ramping new tech fast enough (but the only orders shifted have gone to a low tech UMC partner)
It does sound like the taiwan foundries are offering lower prices to keep IBM from taking business away from them, and that they're mad that they can't get Cadillac services for Chevy prices, but other than that, the article doesn't make much sense.
These guys had no idea that having parts fabbed at IBM's premier foundry was going to cost more than having them fabbed at a newbie foundry in mainland China?
They're only now calculating utilization percentages?
They expect IBM to cut prices to match new commodity pricing from mainland China?
Reality bites, eh guys?
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