Array
(
    [content] => 
    [params] => Array
        (
            [0] => /forum/index.php?threads/another-reason-why-samsung-should-buy-globalfoundries.14446/
        )

    [addOns] => Array
        (
            [DL6/MLTP] => 13
            [Hampel/TimeZoneDebug] => 1000070
            [SV/ChangePostDate] => 2010200
            [SemiWiki/Newsletter] => 1000010
            [SemiWiki/WPMenu] => 1000010
            [SemiWiki/XPressExtend] => 1000010
            [ThemeHouse/XLink] => 1000970
            [ThemeHouse/XPress] => 1010570
            [XF] => 2020770
            [XFI] => 1050170
        )

    [wordpress] => /var/www/html
)

Another reason why Samsung should buy GlobalFoundries!

Daniel Nenni

Admin
Staff member
Samsung Elec sits idly on $182 bn cash hoard as invest put on hold amid leadership void
Samsung Electronics sits on a record cash hoard of 209 trillion won ($182 billion) but has not made a major investment or M&A move beyond the regular chip expansion due to absence of leadership after its chief had been behind the bars since beginning of the year. Even as competitors are busy bulking up through M&As and massive expansions, Samsung Electronics has not made a single M&A beyond $1 billion since Harman acquisition in 2016.

With the combined 27% market share of Samsung and GF you get a much stronger competitor to TSMC's 55%. The semiconductor industry thrives on competition, the foundry business needs competition, absolutely. So forget Intel, Samsung needs to acquire GF!
 

soAsian

Member
Samsung Elec sits idly on $182 bn cash hoard as invest put on hold amid leadership void
Samsung Electronics sits on a record cash hoard of 209 trillion won ($182 billion) but has not made a major investment or M&A move beyond the regular chip expansion due to absence of leadership after its chief had been behind the bars since beginning of the year. Even as competitors are busy bulking up through M&As and massive expansions, Samsung Electronics has not made a single M&A beyond $1 billion since Harman acquisition in 2016.

With the combined 27% market share of Samsung and GF you get a much stronger competitor to TSMC's 55%. The semiconductor industry thrives on competition, the foundry business needs competition, absolutely. So forget Intel, Samsung needs to acquire GF!
yeah but GF rather go IPO and rake in more sweet sweet $$$ (maybe?). maybe Abu Dhabi believed they get more money from IPO instead of any buy out.(?)

 

Jert

Member
To compete with tsmc on size would require combining gf, umc, intel's foundry, samsung's foundry all together. That is simply not possible. So in my opinion, it's impossible to win trying to beat tsmc on size or volume of fabs/wafer outputs. If the objective for intel or samsung is to quickly catch up with tsmc on leading edge (3nm, 2nm...), they ought split out that foundry unit as a separate entity with alternative or shared funding. As people say, if you want to go far, go together, if you want to go fast, go alone. Now the priority is fast.
 

hist78

Active member
Samsung Elec sits idly on $182 bn cash hoard as invest put on hold amid leadership void
Samsung Electronics sits on a record cash hoard of 209 trillion won ($182 billion) but has not made a major investment or M&A move beyond the regular chip expansion due to absence of leadership after its chief had been behind the bars since beginning of the year. Even as competitors are busy bulking up through M&As and massive expansions, Samsung Electronics has not made a single M&A beyond $1 billion since Harman acquisition in 2016.

With the combined 27% market share of Samsung and GF you get a much stronger competitor to TSMC's 55%. The semiconductor industry thrives on competition, the foundry business needs competition, absolutely. So forget Intel, Samsung needs to acquire GF!
"Samsung Elec sits idly on $182 bn cash hoard as invest put on hold amid leadership void
Samsung Electronics sits on a record cash hoard of 209 trillion won ($182 billion) but has not made a major investment or M&A move beyond the regular chip expansion due to absence of leadership after its chief had been behind the bars since beginning of the year."

The alleged US$182 billion cash hoard is incorrect and misleading.

As March 31, 2021, Samsung has about US$187.88 billion in the "Current Assets" category and among them US$36.86 billion is "Cash and cash equivalents". There isn't any US$182 billion cash hanging around.

More Samsung financial details can be found at:
 

Daniel Nenni

Admin
Staff member
Just trying to stay in the realm of possibility here. GF is milking a cow (mature nodes). As a dairy farmer will tell you they need new milk cows to stay in business and that is new process nodes so Intel or Samsung will be good for GF. Samsung and Intel need a separate pure play foundry business to better compete with TSMC and that is GF. Intel and Samsung can both increase the US and EU footprint which is also of value. Perfect fit, like peanut butter and jelly.
 

Daniel Nenni

Admin
Staff member
"Samsung Elec sits idly on $182 bn cash hoard as invest put on hold amid leadership void
Samsung Electronics sits on a record cash hoard of 209 trillion won ($182 billion) but has not made a major investment or M&A move beyond the regular chip expansion due to absence of leadership after its chief had been behind the bars since beginning of the year."

The alleged US$182 billion cash hoard is incorrect and misleading.

As March 31, 2021, Samsung has about US$187.88 billion in the "Current Assets" category and among them US$36.86 billion is "Cash and cash equivalents". There isn't any US$182 billion cash hanging around.

More Samsung financial details can be found at:

Thanks for the fact check. Big difference but still manageable.
 

Portland

Active member
Just trying to stay in the realm of possibility here. GF is milking a cow (mature nodes). As a dairy farmer will tell you they need new milk cows to stay in business and that is new process nodes so Intel or Samsung will be good for GF. Samsung and Intel need a separate pure play foundry business to better compete with TSMC and that is GF. Intel and Samsung can both increase the US and EU footprint which is also of value. Perfect fit, like peanut butter and jelly.
I though gf was coming out with a 7nm node.
 

Daniel Nenni

Admin
Staff member
yeah but GF rather go IPO and rake in more sweet sweet $$$ (maybe?). maybe Abu Dhabi believed they get more money from IPO instead of any buy out.(?)

GF's funding source (Mubadala) wants an exit. Being purchased by Intel or Samsung would certainly rival an IPO if the money was comparable. Remember, GF has IBM lawyers demanding $2.5B which could hurt the IPO :

https://www.bloomberg.com/news/arti...says-ibm-demanding-2-5-billion-over-2014-deal

Intel and IBM are buddies now and Samsung makes IBM's chips so the lawsuit could go away if either acquires. Exciting times for sure.
 

count

Active member
A Samsung/GloFlo acquisition would be very interesting. It would give TSMC some legit competition.
 

Barnsley

New member
Does Samsung manufacture at many "mature nodes"
If so by purchasing GF would that free up capacity in the higher end FABS to focus on that , whilst sending the more mature stuff to the acquired GF Fabs?
 

Tanj

Member
Why would anyone want to be acquired by a company whose corporate governance allows it to be paralyzed when its CEO is jailed? It may seem normal to Korea, but looking at it from any other angle, it raises so many alarm bells. And I am not talking about the legal issues. I mean, where is the succession plan? Why can't decisions be made by those close to the problems? These are problems which you expect in some neighborhood family business. The board of directors should not be allowing a global corporation to be structured like that.
 

Arthur Hanson

Well-known member
Samsung Elec sits idly on $182 bn cash hoard as invest put on hold amid leadership void
Samsung Electronics sits on a record cash hoard of 209 trillion won ($182 billion) but has not made a major investment or M&A move beyond the regular chip expansion due to absence of leadership after its chief had been behind the bars since beginning of the year. Even as competitors are busy bulking up through M&As and massive expansions, Samsung Electronics has not made a single M&A beyond $1 billion since Harman acquisition in 2016.

With the combined 27% market share of Samsung and GF you get a much stronger competitor to TSMC's 55%. The semiconductor industry thrives on competition, the foundry business needs competition, absolutely. So forget Intel, Samsung needs to acquire GF!
With money being as cheap as it is, under two percent for top credit rating companies, a cash hoard isn't the strategic advantage it once was. TSM not competing with customers is also a major strength, just ask Apple. Samsung directly competes over a wide range of potential customers, sharply limiting their total addressable market compared to TSM. The strength of TSM's ecosystem easily trumps Samsung's cash pile.
 

peter

New member
But most of these very same customers rely on Samsung for the best memory and displays for their devices, it's one thing for you to not trust them, but no reason to sour relations with them either. The whole Apple and Samsung issue didn't stem from the semiconductor division either. Relying on any one company is bad, any monopoly is bad business. At least with memory and displays, you do have backup suppliers that aren't too far behind, if TSMC ends up having an insurmountable lead in process, I don't see that healthy for the industry, no matter what the strengths of the ecosystem brings.
 
Top