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Global Foundries gets IBMs chipmaking buisness, as well as a lump sum of cash

LordOfChaos

Member
Paid to *get* assets....That must be nice. I can understand IBMs perspective though, foundaries are expensive business. Though on the other hand, AMD going fabless led to trouble later.

http://arstechnica.com/information-...-1-5-billion-to-dump-its-chipmaking-business/


Might have big implications for CPUs and GPUs later on.
I'm also wondering if IBM will eventually phase out making CPU designs at all. It's just fabtication plants for now, but they seem to be going all services. PPC does have a lot of uses still though, but they could be planning to move to something else.
 

Guevara

Member
IBM's so fucked.

But it's all their fault with this race to the bottom, outsource everything (and offshore everyone), we're now a tech consultancy bullshit.
 

QaaQer

Member
IBM's so fucked.

But it's all their fault with this race to the bottom, outsource everything (and everyone), we're now a tech consultancy bullshit.

There is also the over use of stock buy-backs & the cutting of r&d to fund them. Ginni's done ok in terms of $ for herself & investors, but she has really hurt the long term outlook of the company.
 
IBM's so fucked.

But it's all their fault with this race to the bottom, outsource everything (and everyone), we're now a tech consultancy bullshit.

I thought IBM is generally accepted to be one of the few successful examples of a business transition from products to services.
 

Noobcraft

Member
IBM has pretty much gone all out on the software as a service (cloud) model rather than hardware. The one I live by has been laying off tons (probably several hundred) employees in the past year.
 

efyu_lemonardo

May I have a cookie?
What are IBM's primary sources of revenue nowadays, besides selling systems or designs built around the Power line of processors?
 

Durante

Member
IBM's so fucked.

But it's all their fault with this race to the bottom, outsource everything (and offshore everyone), we're now a tech consultancy bullshit.
I know that real men have fabs and all that, but from everything I hear IBM is actually quite successful in their new direction. Financially at least.

That's a further concentration of the fabbing business though. Now it's really just Intel, TSMC and Globalfoundries left on the high end unless I'm missing someone.
 

Nikodemos

Member
sörine;135142507 said:
I'm guessing they'll go ARM to keep costs/heat low and ease handheld cross-development.
Beefy ARM cores for the home console, compact ones for the handheld. A single GPU architecture (beefy for the HC, slim for the HH), a single set of dev tools.

Pretty much what Iwata's been talking about for almost two years now.
 

Noobcraft

Member
What does that mean in layman's terms?
Think Microsoft Office. Excel and Word are pretty much industry standard tools. Most businesses keep using it because everyone learned how to use those programs in College and they are comfortable with them.

For IBM it's more systems management. They have the tools to keep their customers servers/information flowing and it's really hard to switch once customers (businesses) are locked into that.
 

Nikodemos

Member
Think Microsoft Office. Excel and Word are pretty much industry standard tools. Most businesses keep using it because everyone learned how to use those programs in College and they are comfortable with them.
Also, stuff like offering personalised code for the Internet of Things as applied to industrial settings (the chips embedded in various machinery in a smelter require different procedures from those in a mill, or a ceramics plant).

It's highly lucrative, if extremely technical.
 

Talon

Member
What are IBM's primary sources of revenue nowadays, besides selling systems or designs built around the Power line of processors?
IBM bought PwC's consulting business and has built a very successful IT consulting business...selling their own proprietary enterprise systems.
 

Guevara

Member
Wat?

IBM is like one of the success stories of the last 10 years...

IBM's revenue has dropped for 10 straight quarters, they abandoned their 5 year turn-around plan and their stock plummeted 8% today. Their only bright spot in my opinion is the financial engineering that elevated their share price artificially through share buybacks.

If that sounds like a success to you I don't know.
 

AmyS

Member
EETimes:

IBM, GF Strike Historic Fab Deal

The deal is sweeter in several respects for GlobalFoundries than anticipated, but the foundry will have its hands full sorting out technical details of the implications for its roadmap. Just what impact the move might have for IBM’s slumping Power Systems server business is still unclear.

The news came as IBM came under pressure from "disappointing" third quarter results. Revenues fell 4% from the same period last year, and IBM said it would not hit in 2015 a long held target of $20 in earnings per share.

Here’s a snapshot of the proposed deal:

* IBM will take a $4.7 billion charge in its current quarter to represent the transfer of its fabs and about $1.3 billion in cash to GlobalFoundries.
* The two primary fabs had losses of about $700 million in the past 12 months.
* GF plans to make offers to employ virtually all the more than 5,000 IBM fab and ASIC design employees indentified in the sale.
* GF also gets ownership of more than 10,000 IBM semiconductor patents
* No layoffs or plant closures are anticipated by either company.
* GF gets an exclusive 10-year deal to supply all IBM’s 22, 14, and 10 nm chips.

Overall, the deal could expand by more than 10 percent GlobalFoundries' current capacity, to produce more than 2 million wafers a year.

“It would appear that IBM gave in on both the price as well as the IP in order to get rid of the operations,” said analyst Robert Maire in his Semiwatch newsletter. “In a way it’s a bit of a sad ending for IBM's once-proud hardware technology, but times have changed, and the industry has long since moved on, and it took IBM way too long to wake up to that fact.”

The deal involves IBM’s East Fishkill, N.Y., fab that makes about 15,000 wafers a month mainly in 45 and 32 nm silicon-on-insulator processes. The fab is also ramping the 22 nm process used to make IBM’s Power 8 processors and has some 14 nm technology in development for the follow-on generation.



It’s unclear how Power server users will react to IBM shedding the fabs, which for years developed custom technology to drive performance of its processors.

Power Systems sales are in a significant decline. After reaching a plateau in about 2005 of $7.5 billion, sales started to slide and last year dropped more than 30 percent to $3.9 billion. In its 2013 annual report IBM said it "recognizes that the size of the Power platform will not return to prior revenue levels."

In anticipation of the deal earlier this year, some analysts and former employees called IBM’s chip group a “national treasure” and its sale a “sad day.”

To its credit, IBM’s semiconductor innovations included:

* Single transistor DRAM cells in 1966
* The RISC processor architecture in 1980
* 3D chip packages (ceramic modules, flip chips) in the 80s
* The first 200 mm wafer fab in the industry in 1989
* Embedded DRAM caches
* Copper interconnects in 1997
* Chemical mechanical planarization (CMP)
* Argon fluoride lithography
* Computational lithography
* Chemically amplified resists

IBM led the market for memory chips in the late 1970s and was the first to recognize the importance of packing memory on processors as a main way to boost computer performance. But its move into SOI for embedded DRAM is seen as the beginning of its shift away from mainstream process technology, which stayed with Intel and now foundries such as TSMC with bulk CMOS.


Remember this? IBM's press release from May, 1999 on the deal with Nintendo for Dolphin's CPU::

https://www-03.ibm.com/press/us/en/pressrelease/2181.wss

IBM, Nintendo Announce $1 Billion Technology Agreement
IBM 400 MHz Copper Processor To Power Next Nintendo Game Machine


LOS ANGELES, CA - 12 May 1999: -IBM and Nintendo today announced a multi-year $1 billion technology agreement to support Nintendo's next home video game console, code-named "Dolphin."

As part of the agreement, IBM will design and manufacture a unique 400 MHz central processor featuring IBM's industry-leading 0.18 micron copper technology. The chip, dubbed the "Gekko" processor, is an extension of the IBM PowerPC architecture. It's designed to be more powerful than those found in any current or planned home video game entertainment system, providing players with dramatically better graphics and more realistic action.

The processor is in the advanced stages of development, supporting Nintendo's plans for a worldwide launch for the 2000 holiday season.

While the relationship initially involves the development and production of the copper-based processor, the companies will explore the potential use of IBM technology in other Nintendo products as well. The current arrangement calls for IBM to design, manufacture and ship copper processors to Nintendo, with the potential value of the deal exceeding $1 billion.

"Dating from our very first home system in 1983, Nintendo's ongoing commitment is to provide game developers with industry-leading technology to create new game experiences for our players," explains Howard Lincoln, chairman, Nintendo of America. "IBM's new copper-based chip delivers on that commitment like never before, and we've jointly committed to a long-term relationship to assure revolutionary results."

In order to provide more power than Nintendo's current game system chip, the IBM processor leverages IBM's experience with complex system designs to incorporate enhancements specifically required by Nintendo. These include extra on-chip memory and more efficient data management between the processor and the game system's primary graphics chip.

"As customers such as Nintendo develop increasingly sophisticated systems, the complexity of the chips that power them grows dramatically," says Dr. John Kelly, general manager, IBM Microelectronics Division. "Not many companies are able to meet this need. We have the technology, design expertise and manufacturing experience necessary to develop and deliver customized solutions for our customers."

With IBM's advanced copper processor powering the next Nintendo system, developers can create game designs featuring the degree of realism, emotional connection, fantasy or interaction they've always imagined.
"Designing games is an ever-changing process, and this chip with its speed and seamless data flow, will allow us to make even more amazing games, " explains Chris Stamper, chairman and technical director of Rare, Ltd., producer of mega-hit games Goldeneye and Banjo-Kazooie for the N64. "Consumers will love the end result with the upcoming system."

"In my mind, I'd always envisioned what a game like Zelda could look like, and with the N64, I was able to create it," describes Shigeru Miyamoto, Nintendo developer and world-renowned game designer. "Now, with the Gekko processor, I can see an opportunity to take game designs to a new level."

The IBM copper processor will be paired with a revolutionary graphics chip designed by ArtX Inc., one of the world's leading 3D graphics technologists located in Palo Alto, California. The ArtX team, led by chairman, Dr. Wei Yen, includes a number of well known 3D graphics designers.

"The lineup of companies working on Nintendo's next system is hugely exciting," notes Dr. Wei Yen. "The match between Nintendo's know-how in the video game field, and the enormity of what IBM brings to the table can't be matched."

The Nintendo game system processor chips will be manufactured at IBM's high-volume manufacturing facility in Burlington, VT, where copper-based processors have been manufactured and shipped to customers since 1998
.
 
Paid to *get* assets....That must be nice. I can understand IBMs perspective though, foundaries are expensive business. Though on the other hand, AMD going fabless led to trouble later.

http://arstechnica.com/information-...-1-5-billion-to-dump-its-chipmaking-business/


Might have big implications for CPUs and GPUs later on.
I'm also wondering if IBM will eventually phase out making CPU designs at all. It's just fabtication plants for now, but they seem to be going all services. PPC does have a lot of uses still though, but they could be planning to move to something else.
I don't understand, why is IBM paying when they're the seller?
 

blu

Wants the largest console games publisher to avoid Nintendo's platforms.
I don't understand, why is IBM paying when they're the seller?
They're the seller, but they don't want the property being sold dissolved, so instead of dumping it, they're passing it on to another owner, covering the expenditures in the process.
 

ethomaz

Banned
IBM's so fucked.

But it's all their fault with this race to the bottom, outsource everything (and offshore everyone), we're now a tech consultancy bullshit.
But we are one of the few cases of success in the late years....

Edit - Unless your post is a satire or sarcasm.
 

th4tguy

Member
Paid to *get* assets....That must be nice. I can understand IBMs perspective though, foundaries are expensive business. Though on the other hand, AMD going fabless led to trouble later.

http://arstechnica.com/information-...-1-5-billion-to-dump-its-chipmaking-business/


Might have big implications for CPUs and GPUs later on.
I'm also wondering if IBM will eventually phase out making CPU designs at all. It's just fabtication plants for now, but they seem to be going all services. PPC does have a lot of uses still though, but they could be planning to move to something else.

They stated a strong shift to r&d for chips. That and services......
 
Should have some implications with Nintendo's next console. I believe Iwata had mentioned wanting the next systems to be able to utilize software that was in development for Wii U on future systems. This may make that plan more difficult, unless I'm missing something.
 

itxaka

Defeatist
I know that real men have fabs and all that, but from everything I hear IBM is actually quite successful in their new direction. Financially at least.

That's a further concentration of the fabbing business though. Now it's really just Intel, TSMC and Globalfoundries left on the high end unless I'm missing someone.


Ibm is ok because they are a bully. They have their hands on everything and everyone so they can force other enterprises to go through them in order to sign up with another business.

Also, white brand everywhere up in this bitch. Half of their stuff is not theirs.

But hey, that works for them so...OK.
 
as someone from the East Fishkill area with several close family members who work for IBM this is interesting. Now my sister-in-law can sweat again about her job
 

LordOfChaos

Member
IBM's so fucked.



Even with stalling revenue growth, no, not really. They've been a slow steady grower for a long time, only if you look in the short term does it look like they're on the way out. But they have plenty of reserves, no staggering debt...They're like the Nintendo of their industry, always just about to die if you hear it from some, but a much longer term company internally. And stalling growth doesn't mean they're bleeding money.
 

tronic307

Member
Beefy ARM cores for the home console, compact ones for the handheld. A single GPU architecture (beefy for the HC, slim for the HH), a single set of dev tools.

Pretty much what Iwata's been talking about for almost two years now.

Nintendo would be smart to do that, but I wonder what happens to backwards compatibility in that case.
 
Should have some implications with Nintendo's next console. I believe Iwata had mentioned wanting the next systems to be able to utilize software that was in development for Wii U on future systems. This may make that plan more difficult, unless I'm missing something.

Nintendo have likely been planning for this day. The plan would probably be to license the Power architecture, as many companies already do with ARM and as IBM have recently encouraged with their latest designs. From there, they can integrate the Power cores on an SoC and take it from there. That is if they stick with Power, and right now I still think they will.
 

LordOfChaos

Member
Also interesting, the East Fishkill fab is a trusted foundry. IBM couldn't simply shut down there fabs due to contracts in place with the US government. This also means this sale will undergo an extra rigger of scrutiny due to the national security implications.


Nintendo have likely been planning for this day. The plan would probably be to license the Power architecture, as many companies already do with ARM and as IBM have recently encouraged with their latest designs. From there, they can integrate the Power cores on an SoC and take it from there. That is if they stick with Power, and right now I still think they will.

Do you mean licence the ISA and build cores by themselves? They've had a significant amount of input in that area, but it's always been in partnership with a main chipmaking company before. I'm not sure if they'd go the fully custom route, that's pretty expensive, and the results might be subpar compared to just partnering with a dedicated CPU engineering firm.

And in that vein - there are many many companies that do that with the ARM ISA, it would take some doing to move their existing cores over to PPC. I'm left wondering if all that would be worth it.

For me, I'd rather just have them dump BC and go with the most forward facing designs.
 

Renekton

Member
Ibm is ok because they are a bully. They have their hands on everything and everyone so they can force other enterprises to go through them in order to sign up with another business.

Also, white brand everywhere up in this bitch. Half of their stuff is not theirs.

But hey, that works for them so...OK.
At this point I think they can fail hard as a company and still rake in major dosh on patent royalties lol
 
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