On this episode of The Six Five On The Road, hosts Daniel Newman and Patrick Moorhead provide their analysis and opinions on GlobalFoundries’ recent GTS 2023 event, taking an inside look at how the company is “Delivering a New Era of More.”
Their discussion covers:
- Who GlobalFoundries is and what they do as a leading semiconductor manufacturer
- Highlights from GTS 2023, including keynote speakers, and key partnerships discussed over the two-day event
- The supporting cast of essential specialty parts that come from GlobalFoundries when it comes to AI, Machine Learning, intelligent automobiles, smartphones and more
- How GlobalFoundries is approaching sustainability within the semiconductor industry, and how that translates into the everyday technology we all use
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Patrick Moorhead: Hi, this is Pat Moorhead, and we are back for another episode of The Six Five Podcast. We are virtually doing the end-of-event analysis of the GlobalFoundries GTS 2023. What does GTS stand for? It is the Global Technology Summit. Daniel, how are you doing, my friend?
Daniel Newman: Yeah, I’m always happy, Pat, when we have the chance to tear down a couple of really action-packed days, talking semis, talking about what AI, automotive, getting to the edge, some really exciting partnerships. Of course, really, Pat, pulling the threads, tying together what’s going on in the industry and why GlobalFoundries has had such a successful ascent, especially in the years following its recent IPO.
Patrick Moorhead: Yeah, it’s crazy, Dan, I remember 10 years ago talking to literally a major business news outlet, top three, and they said, “I don’t know if we’re going to cover chips anymore. My editor doesn’t think it’s interesting with technology,” and I did a massive eye roll. But as we like to say, chips are eating the world as much as software is, and you can’t run that fancy software on air. Then the dark days hit. I’m not going to use the P word three years ago, but-
Daniel Newman: No, you don’t want to get censored?
Patrick Moorhead: I don’t want to get censored or some warning underneath our video. But I think we all learned even down to the consumer sitting at the dinner table how important semiconductors were. It wasn’t just the bleeding edge, it was the 12 cent pennick that went into the radio of the $100,000 car that was driving people crazy. Then here we are, AI crazy with NVIDIA going off the rails, a lot of the companies that are a part of that ecosystem getting a ton of interest and literally, I don’t know, Dan, have we been at 100 virtual or in-person events since November about generative AI? It’s crazy.
Daniel Newman: Yeah, you make a really good point. All this AI is only possible because semiconductor companies building everything from the most advanced GPUs to FPGAs and ASICs to low-power sensors that end up-
Patrick Moorhead: Exactly.
Daniel Newman: … pulling all that data that we need to do all the really cool things that we’re hearing about on our big powerful supercomputers. So these things are very intertwined, and it’s a nice segue way, Pat, to GlobalFoundries. You talked about that inquiry you had a decade ago, and it’s pretty laughable. I have to imagine that Producer is probably unemployed at this point because there isn’t really a part of the tech stack that is more readily covered because of its implications on not only technology but national security, global policy, technology leadership. It’s great that you got that SaaS application, but like you said, try running it on air. You can’t-
Patrick Moorhead: Right.
Daniel Newman: … do that. So this really interesting inflection here, Pat, comes back to, hey, we live in a world where we need a whole continuum of processes. Every device that we use, whether it’s the new iPhone 15, I want to do this so I can check my phone, or whether it’s a legacy automobile or an appliance, it’s full of semiconductors. In some cases, you’ve got these 3, 5, 7 nanometers that everybody likes to talk about, and that’s what most of the media focuses on. Then there’s the 20, 30 nanometer plus technologies that are still in all of these devices, in many cases, doing very important things. Pat, if you tried to buy a car during the P word, during that time when the supply chain got absolutely annihilated, you may have heard at some point that the reason you didn’t get your car wasn’t because they were missing some advanced process chip that was used for something. It was literally some very old legacy bust that might be used to control the adjustments on your seats or something very simple like that. Then literally, they could not finish a product.
Patrick Moorhead: So hey, we are doing the end-of-event coverage for GTS 2023, but for those who may not be aware of who GlobalFoundries is, man, Dan, can you talk about who the company is and what they do if they’re unfamiliar?
Daniel Newman: Yeah, of course. GlobalFoundries was founded in 2009. It was actually spun off of your old stomping grounds. I saw you on CNBC recently. I think it said “former corporate fellow, AMD.”
Patrick Moorhead: I’m never getting away from that, am I?
Daniel Newman: Never getting away from that, but that’s also an honor. You were one of the youngest ever in that role. But they were founded in 2009, originally, a private company, in 2021 became public, but they’re one of the world’s leading manufacturers of, they position it as essential chips. We could say there’s a few different ways. Sometimes people call it an older process, sometimes people call it lagging edge. But these are really important semiconductors that are utilized, as I told the story about phones and cars, to basically manufacture almost everything that we use that is electronic or that uses electricity.
It’s a global company, so it’s not just a name. They have a footprint, fabs in Singapore, fabs in Europe, in Germany, in the U.S., a big presence in New York and Vermont as well. They’re really well known, Pat, for the work that they do in a number of adjacencies, but auto, which we’ve hit on. But they work in the data center, home and industrial IoT. Then, of course, they’re part of smart mobile, and they really like to remind everybody out there that basically there’s not a device you can buy that doesn’t have some part from GlobalFoundries.
Patrick Moorhead: Yeah, it’s a really interesting company. Yeah, it was a spinoff from AMD. There were some acquisitions and the company really does, I like to call it specialty Fab in areas. It’s funny, GlobalFoundries does what Intel doesn’t and a lot more. I think that’s the simple way that I sometimes explain this to people. So the company had GTS 2023. You and I, gosh, watched, I don’t know, six hours of video. We were not able to attend, but it’s a great show, and it’s what you would expect from an ecosystem show. We go to a lot of ecosystem shows, some of them from chip makers, some of them are industry shows, IAS, PasS, SaaS providers, and this is their ecosystem show. This is where other OEMs, fabless semiconductor companies, OSSEC companies, EDA, IP companies, IP companies like ARM come in, EDA. In fact, the show seemed like it was majorly sponsored by Synopsis and Cadence.
Daniel Newman: The companies that do IP and EDA.
Patrick Moorhead: Exactly, and there were a bunch of keynote addresses. They went through their roadmaps, a bunch of demos. We didn’t get to see the demos ’cause we weren’t there. But gosh, I think I’ve been to five or six years of it and it’s pretty awesome. As you would expect, you have headliners. CEO, Tom Caulfield kicked it off. But the two other headliners were a gentleman that you and I know quite well, Charlie Kawwas, COO at Broadcom. He essentially runs the entire chip business for Broadcom, and John Forsyth, CEO from Cirrus Logic. So the highlights are what you would expect, Dan, in how you position the company, they talked about ultra-low power technology platforms that they had.
Remember, platforms is basically a flow, it’s a process. RF and millimeter wave connectivity solutions, Charlie hit on that big time and very localized, low-power intelligent applications with secure non-volatile memory technology. That’s another area that they hit, so talking about exactly what you would expect at an ecosystem event. So a lot of key themes, it’s funny, it’s hard to go through six hours of videos and maybe walk away with a few themes, but we’re going to give it our best shot possible and really follow the lead of CEO Tom Caulfield. So Dan, what were some of the themes that you walked away with?
Daniel Newman: Well, first of all, GlobalFoundries is among the biggest companies in semis that oftentimes no one’s heard of. I thought it was really important that Tom set the stage of why the company serves over 200 customers, why the company has 13,000 employees, 8 billion in revenue, and 9,000 patents. I only point that out because this ties to the first theme, and that’s AI. It’s very easy in this current market space to anoint a very small number of fabulous chip makers as the king of AI, queen of AI, whatever you want to call it.
Patrick Moorhead: There’s one that’s anointed. Even Tom joked about the definition of AI is NVIDIA, the biggest challenge is getting enough NVIDIA.
Daniel Newman: Absolutely. But of course Tom immediately set the stage that, “Hey, AI is important here too.” The essentials, the specialty, however we want to define this, Pat, is that for AI to fully work, there are these virtuous relationships, and we’ll come back to that in a minute between the edge and the cloud, and we’ll talk about that more as a theme, ’cause I think that was a theme too. But he really talked very succinctly about the fact that these essential chips are critical to being able to deliver AI, whether that’s AI in a medical device, whether that’s going to be AI on your PC and smartphone, whether that’s going to be AI in a smart appliance in your home. Then, of course, you’ve got things like infrastructure in 5G and networks that could be doing things that the silicon diversity that has to exist inside of this infrastructure is substantial.
That, while we all want to think about the high-power HPC running the biggest NVIDIA Grace Hopper, we also have to think about all of the different specialty silicon that has to go inside of those devices that makes these lower power, that drives efficiency, that can enable these systems to connect and network at scale. So the first thing, Pat, that really caught my attention was, while I didn’t feel he over rotated, because a lot of people I do feel right now over rotate to how important AI is, I think he wanted to say, “Look, there are not going to be servers built. There are not going to be intelligent automobiles made. There’s not going to be a future generation of smartphones that are going to have AI without the supporting cast of essential specialty parts that are going to come from GlobalFoundries.” So that, Pat, was my first big trend that I saw from Thomas.
Patrick Moorhead: Yeah, I really liked how he pulled on history. I love to do that. I love to start with the mainframe and then go all the way through mini’s, client, server, pc, smartphone, IoT. I loved how he went through that. But what he did is he set up what he called a virtuous cycle, which I wholeheartedly agree, which start, is the edge connected to the cloud, and then connectivity in the middle, and then AI adding value on top of that? That’s where going down to the funnel to see what’s the unique value that GlobalFoundries brings and why are they really good at it, or why are they better than let’s say a TSMC or a tower? So to what you said before, he started with edge intelligence, which was like all the data or most of the data that you’re going to get that may or may not be transported, all of it to the cloud is going to be from the edge.
He has a really good point. Companies like Qualcomm, it’s funny, I think him and GlobalFoundries Intel and Qualcomm might be the two companies who are hitting this the hardest but historically, it’s going to happen. There’s more ML today, Dan, on the edge than there is in the data center. So I don’t see why generative AI would be any different. You have to connect the edge in the cloud. How are you going to do that? Well enter companies like GlobalFoundries partners, like Broadcom, integrated RF. We always like to say it stops at the modem, but it’s the modem plus the RF systems that make this world go around.
Oh, by the way, it’s not just on a 5G smartphone, every router, every device that’s wireless that’s out there has to have a low-power integrated RF. Fast switching, Dan, you and I talk about going from 5G to Wi-Fi to Bluetooth on the same type of device, that is difficult. You and I have talked about millimeter wave and yes, it does consume a lot more power than let’s say sub-6, 5G a millimeter wave, not only for 5G, but also for Wi-Fi needs to be the most efficient. Then he did, this is just a fact, he wasn’t saying, “Hey, it’s all about the edge and not about the cloud,” but he did talk about the monetization of the hyperscalers.
You and I have talked a lot in regards to let’s say Broadcom and Marvell about, “Hey, okay, it’s a copper world, but we are going to photonics. GlobalFoundries, I wrote a paper on this, I do consider the leader in foundry for or silicon photonics. Whether it’s connecting in the data center, an accelerator to another accelerator, a rack to a rack, a fleet to a fleet, a fleet to a data center, combining data centers, silicon photonics is the way of the future and low power, baby, it has to be low power. So I would say that that second theme, or the second thing that came in was talking about the virtual cycle between the edge and cloud, which is connected by networking and enhanced by AI.
Daniel Newman: Yeah, I think that’s a good one, Pat. You probably couldn’t have an event like this in a world that’s so focused on meaningful management of resources without talking about power and sustainability.
Patrick Moorhead: Yep.
Daniel Newman: Now, I know you and I, we get flustered at times with the market washing that can take place with sustainability.
Patrick Moorhead: Right.
Daniel Newman: The chip industry is different because what it’s able to design when it’s able to put lower power into these devices and literally elongate the battery life, for instance, of your phone or of a different device, this is creating meaningful… remember, there’s billions of these devices out there, even incrementalism here, small incremental improvements. Now look, we all saw the Apple announcement and yes, you and I, a little bit of snawn, I said snawn, snooze and yawn when it came to-
Patrick Moorhead: Well, that’s good. Can I–
Daniel Newman: Oh, great-
Patrick Moorhead: Wait, I might use that and not give you any credit for it, a snawn.
Daniel Newman: You’ve got a snawn.
Patrick Moorhead: That’s awesome.
Daniel Newman: You got to got to tap in snawn, you tap in snawn. But the like, oh, they said it’s going to last a little bit longer, but you and I actually know that deep down, that matters. We’re bored because we want the next cool thing that’s like the next Vision Pro just ’cause it’s something to really talk about. But when you hear that, “Hey, Pat, you can get a super powerful laptop with connectivity that’s going to last you 24 hours while utilizing all of the typical resources in a day without a charge,” you know that you get that little sweat gland in the back of your neck, you’re starting to think, “That sounds like a computer I want in my bag.” So these abilities for specialty companies like GlobalFoundries to influence power consumption in these devices is really, really important.
It creates lower TCO. It doesn’t only drive more efficiency to the device, and it also does help companies meaningfully meet sustainability goals. Because in the end, most companies that are trying to meet the hopefully important parts of sustainability, lowering their carbon footprint, I’m not talking about offsets here, I’m talking about actually doing things that help lower their impact and emissions can do this with these kinds of incremental items. You have a company of 50,000 employees, lower power PCs, more efficient automobiles in your fleet, lower power phones, data centers utilizing less power, this stuff adds up, Pat, and GlobalFoundries has a role to play here. I think Tom made that really clear at GTS this year.
Patrick Moorhead: Yeah, I love, one of the things that Tom said, it makes your brain do a second take, was he talked about the beauty of how important it is when a chip is off. He’s like, “When it’s off, it’s off.” He talked about sensors, one that might wake up every second or so to see if anything’s going on. Did anybody say anything? Did something happen? If we didn’t have these types of sensors, the phone might use a 100X more power than it does today to do some of these fancy type features. But I do like there are companies who greenwash this stuff and there’s companies that actually do something to lower the amount of energy and improve the efficiency, and GlobalFoundries is one of those. So Tom really capped off his talk, and I thought this was a theme throughout the show, even Charlie talked about partnerships from Broadcom, but Tom really came in strong in the end to talk about partnerships. It’s so interesting, we’ve seen Tom on TV so many times. He gets out there, doesn’t he?
Daniel Newman: And on The Six Five.
Patrick Moorhead: No, totally. Yeah, he has been on The Six Five a bunch of times, but he talked about partnering first of all for innovation. GlobalFoundries actually has co-development with partners where they’re not only putting in work, they’re sharing some of the IP that comes out of that. Charlie gave some great examples of that specifically around the new 9SW RFSOI technology for 5G applications. I thought that was a good proof point. He also talked about economics, like, “Hey, no longer can one or two companies shoulder the burden and therefore, we’re going to share the burden.” There’s been a lot of investments from customers, namely the auto manufacturers who have done some long-term agreements. But if companies like GlobalFoundries can shoulder some more of the risk than the companies just going into IT themselves, that’s going to make the world go around. We’re in a risk reward type of business and putting up 10 billion for a new foundry and bank rolling in, having to put down the cash three years before you actually derive any revenue from it, it’s a risky proposition.
So I agree with Tom’s premise on economic, and then talked about something you and I love, and you and I have been spending so much time on, secure supply chain. Sometimes we call it de-risking China. Sometimes we call it other things, but GlobalFoundries pretty much has a footprint wherever their customers need it. I won’t hit the sustainability part again, Dan, you did a great job on that. But I want to end on this partnership theme on something Charlie brought up from Broadcom. He hit this open innovation platform, can’t be a mainframe. How do we get open innovation platforms? I don’t know if he was talking about AI, he probably was there, but we can’t have any type of mainframe type of platform. By the way, I don’t mind mainframes. I kind of like them. Even Tom said all these different things are additive, but I think Charlie ended where he started, which is, open ecosystems require an open platform. I liked to hear that, and I think that’s part of a partnership.
Daniel Newman: So if I can just add a little bit of color on this one. I think GlobalFoundries has really done a good job of uniquely positioning itself as an economic partner to its customers. Now, they’ve talked about this not just at GTS, but the long-term agreement is something that GlobalFoundries has really specialized in. While some chip makers and some foundries might be very opportunistic, we all saw how opportunistic TSMC was during the period of time when we had the shortages, GlobalFoundries really leaned into more predictability, long-term partnerships with companies like GM where they basically guaranteed important capacity and guaranteed pricing, which as we know in the chip industry is a risky proposition.
But it does create a certain amount of loyalty and codependency in a meaningful way between customers and foundry, where GlobalFoundries may not benefit from those massive margins when they can spike on the surge, but they also don’t get hammered when you see these declines. We’ve seen all that up and down, and over a period of time, the strategy may really work well for the company ’cause they know they have a guaranteed production, volume and price to count on during both the peaks and troughs of the semiconductor industry.
Patrick Moorhead: That’s good. That was a good ending. I like that.
Daniel Newman: Oh, that’s good. Yeah. Okay. All right. Did I put you to sleep?
Patrick Moorhead: No, not at all. No. Dan, I’m riveted whenever you say something and I just like-
Daniel Newman: Aw, thanks.
Patrick Moorhead: … hanging on every word. I need to put Otter on and record it so I can just steal all your good ideas-
Daniel Newman: All right, I got you-
Patrick Moorhead: … as my own.
Daniel Newman: Let’s go.
Patrick Moorhead: Hey, an event wouldn’t be an event in tech without doing some major announcements. There were three major announcements that were packaged up into two big announcements. One was for automotive and one was for 5G RF applications. Dan, I know you are a car lover here. I don’t know if you want to dive into this automotive announcement.
Daniel Newman: Yeah, I think a good way to wrap this recap is to talk a little bit about what was announced.
Patrick Moorhead: Yeah.
Daniel Newman: Look, I just got back from the mobility show in Munich.
Patrick Moorhead: Yeah, you did.
Daniel Newman: I’m watching these trend lines, AI, smarter cities, lower power consumption, sustain… all the trends, software-defined vehicles, all the trends that Tom Caulfield talked about at GTS were on display in Munich. GlobalFoundries has a very robust business in automotive. He actually mentioned this, and in case it was a business that was in the low hundreds of millions just a few years ago-
Patrick Moorhead: Yes.
Daniel Newman: … and now a billion-dollar-
Patrick Moorhead: Yes.
Daniel Newman: … business in this particular space. Why is that? Well, first of all, the volume of semiconductors that are going into vehicles is growing exponentially. We’re seeing average vehicles now that might have 1,000 chips in them-
Patrick Moorhead: Yes.
Daniel Newman: … and typical ICE, internal combustion engine vehicle. In these new electrified vehicles, sometimes they call them ACE vehicles, you’re seeing 3,000 chips.
Patrick Moorhead: Yeah.
Daniel Newman: Now as you’re hearing about these companies becoming critical partners or as I mentioned, long-term agreement for exclusive supply to a company like GM, you have an opportunity for GlobalFoundries to be a massive beneficiary to a trend line like this. Why do I share that? Well, the company did roll out, now again, bear with me here because these parts can be a lot to digest, but it’s the 40 ES F3 Auto Pro 175 technology. Got that? You ready to place your order? But in all serious-
Patrick Moorhead: I’ll take a 100 million, please.
Daniel Newman: … it’s an extension of the company, what it calls its Auto Pro platform. That’s a little more digestible, and it gives the customers a broad set of IP of technology solutions and manufacturing capabilities that basically speeds up time-to-market, and why is that important? Let me tell you why that’s important. We all know that life’s cycle and design cycle of a vehicle can be many years. We’ve heard companies like NVIDIA and Qualcomm talk about design pipeline and automotive, that often means business five, seven plus years in the future.
Patrick Moorhead: That’s right.
Daniel Newman: But we all know with AI, ADAS electrification that there is absolutely no way companies can continue to build vehicles that don’t have meaningful software-defined feature upgrades that are going to happen on nearly an annual basis. Cars, here’s a quote for the day, will be like iPhones. They will get launched two times a year, and there will be almost no change from the last version, but people will want to buy them anyway. I’m kidding about the no change, but it’ll be very incremental. They’ll be able to make very incremental and continuous changes. We’ve seen how Tesla has been able to build a very dynamic brand around the ability to constantly change and update.
So while the specifics of the announcement are fairly complex, and we will put the release in the show notes if you want to read that off, what is happening is A, you’ve got this trend line of shift from internal combustion to electrification. You’ve got ADAS, you’ve got telematics systems navigation, you’ve got infotainment systems, and you need to be able to build these more like building blocks. So what GlobalFoundries is announcing with the extension of capabilities to its Auto Pro platform gives its OEM partners the ability to move faster in their design cycles in partnership with GlobalFoundries. I think this is a strong move at an important time to support this rapid growth business for the company.
Patrick Moorhead: Yeah, it’s amazing how the car has become, you can look at it as a smartphone, you can look at it as a data center on wheels, but it’s a software-defined piece of machinery. Some people say, “Gosh, why do you worry about power as much as you do in let’s say, a smartphone?” Well, what happens is increased power efficiency means higher, longer range inside of an electric car. I would claim the number one attribute for electric cars is how far you can go on a charge. The difference between 600 and 800 horsepower off the line isn’t as much, but it’s also keeping people from buying electric cars ’cause they fear that they’re not going to be able to plug in enough.
Part of these solutions that they brought out, an update to their BCD light and BCD platform is to improve power inversion and conversion. It sounds boring, but it’s super important, ’cause you might have five or six different voltages flowing around in that car that need to be regulated. My take on the Auto Pro update is time-to-market. I think you had mentioned that, but it’s pre-certifying under auto conditions like temperature that enable them to hit time-to-market, three years instead of seven years. I think you had brought in, if I heard you correctly, so-
Daniel Newman: I didn’t say that exact timeline, but I was trying to basically help people understand that right now, when you would partner with a Tier 1 on components and semiconductors, it would typically take seven or so years. We’re going to see that, my joke Pat, was it’s going to be iPhone cars, meaning every six months, you’re going to get a new one. We won’t get there right away, but that’s directionally where we’re heading.
Patrick Moorhead: Wow. I hope it’s a lot more exciting than the iPhone launch this winter.
Daniel Newman: You’re going to get new mirrors that fold a little bit differently. But don’t worry, Pat, you’re going to be able to go like this and answer your call while you’re in the car.
Patrick Moorhead: I love that. So hey, the second bundle of announcements were around something that GlobalFoundries is very successful at. We heard echoing from Charlie Kawwas at Broadcom, and that is 5G RF. The company brought in a 9SW RFSOI, by the way, silicon on insulator, gives you much better power than what we call bulk. That’s the material that you use as the substrate. It’s funny, I was trying to figure out, hey, what does 9 mean? What is nine about? Well, 9 is bigger than eight, and 8 was what they had before. They had 8SW, and this one is improved, 10% smaller volume and 20% enhancement in efficiency.
Again, I keep bringing up Charlie, but Charlie told some good stories as they co-developed this with GlobalFoundries. By the way, do we know the customers that Broadcom supplies for a lot of their RF stuff? I think we do, and I think they had a big event this week. RF front ends are not just for smartphones, though, they’re also for Wi-Fi. They’re for Bluetooth. You need an RF front end every time you want to go from a digital analog, and that includes Bluetooth, that’s Wi-Fi, that’s 5G. The cool part about this goes all the way up to sub-8 GHz, and that’s some of the fancy new wireless that’s coming down the line. Wow. There was a lot in this event, Dan.
Daniel Newman: There really was. I think it’s not only about the event, Pat, but I really think it is about talking about the role that pure play and an essential partner has to the entire technology ecosystem. I often think it’s missed. You started this pod with your story about a conversation 10 years ago. I can tell you, I had a recent conversation with a journalist that asked me a question along the lines of, “Do you think it frustrates GlobalFoundries that they’re not more well-known?” Here’s the thing is, I think GlobalFoundries knows exactly what it’s doing. The people that need to know what GlobalFoundries is, know what GlobalFoundries is. Investors that understand the importance of the continuum of process technologies to make the world work, realize how uniquely GlobalFoundries is positioned because these fabless companies can’t manufacture, the IDMs are putting most of their weight towards leading edge. The fact is, over 80% of silicon that’s in devices is still higher than seven nanometers. So if you’re a GlobalFoundries, I’d be saying, “I like our prospects.”
Patrick Moorhead: Right.
Daniel Newman: Now, it’ll never be the headline that an NVIDIA chip or a Bionic A-17 chip is going to give on a day in and day out basis, Pat. But sometimes, I don’t know how you feel about this, good business is good business.
Patrick Moorhead: Yeah, that’s right. You don’t always have to be in the big headlines, but when cars aren’t shipping and devices aren’t shipping because of some of this specialty silicon, you don’t want to be in the headlines for that, but you can be. Dan, something we don’t talk about a lot with GlobalFoundries too is there are a ton of people who still have their own fabs, like Skyworks as an example, On Semiconductor, Texas Instruments, they still have their own fabs. As you have the combined R&D of GlobalFoundries partners and themselves who are working with them, you have to ask yourself, “Hey, when…” Now to be clear, nobody is a pure play and does all their own silicon. I think everybody does some business with GlobalFoundries, but you have to wonder how long can On Semis, the TIs, folks like that not be doing all of their stuff in there?
I think what you would do is you would start to see that once Global Foundry starts lapping the competition on its capabilities, and once you start seeing people maybe lose market share because they’re not dealing with leading edge, even Intel as an IDM does 10, 15%, maybe more of its silicon at TSMC. So yeah, it’s something we don’t talk about a lot, but whatever we discussed on this podcast got my brain moving on the opportunity for GlobalFoundries. But isn’t it wild, though, a company like GlobalFoundries can span not only from the smallest ASIC and controller for IoT to connecting the largest hyperscaler data centers with silicon photonics? It’s king of cool, that the variability of and the importance of what the company does
Daniel Newman: It absolutely, Pat, makes the company one of the most important names in the business, whether you’ve heard of it or not. Another great GTS, Pat.
Patrick Moorhead: Yep.
Daniel Newman: Really glad we had the chance to sit down and riff, got to hear from so many thinkers, of course, CEO Thomas Caulfield, Charlie at Broadcom. We heard from the CEO of Cirrus Logic, but we also heard from a number of the executives across the GlobalFoundries family, and there’s so much expertise at the event. So hopefully, this was a great way for you out there to learn a little bit more about what GlobalFoundries did at this year’s GTS. If you like what you heard here on The Six Five, we have a show every single Friday except for the ones that we don’t. Of course, we’ve got a massive library of executive conversations that we hold at our Annual Six Five Summit, or of course, at our various Six Five on the roads. But Pat, for this show, for the GTS wrap up, it’s time to say goodbye. Thanks, GlobalFoundries, for your partnership.
Patrick Moorhead: See y’all later.