That IBM was wrong with GlobalFoundries is a clear example of how to lose share quickly due to a bad strategic decision, which although complicated, did not have a quick reaction from the company to get out of the situation it was in. All foundries are facing problems at different nodes, but GlobalFoundries stalled and reportedly breached the agreement signed with its client / investor IBM. What happened?
Neither 14nm nor 10nm, GlobalFoundries failed to meet IBM
In October 2014, both companies signed an agreement where the blue ones transferred the microelectronics division to the now independent GlobalFoundries, which meant manufacturing CPUs, SoCs for consoles for Microsoft, Nintendo and SONY and different chips for multiple clients, such as the government of The USA.
But GF failed to deliver on the 14nm IBM Power yz processors at the time, and the 10nm did not even make it to volume production as such. This gave in the first place a delay in the Power8 and that IBM had to turn to Samsung in order not to lose camber, or at least to continue in the cannon foot even with delays.
The problem is that these delays and breaches left the blue company without a reliable roadmap for its investors in a section as key as servers, so Intel and later AMD took more share and relegated IBM to almost nothing.
Damages worth $ 2.5 billion
Therefore, IBM claims GlobalFoundries an amount of no less than 2.5 billion dollars in the Supreme Court of New York, where the question focuses on the temporal rather than the economic: why now after almost 6 years?
Well, for an economic issue that few knew until the focus was on this demand. And it is that Mubadala Investment Company as the investment arm of Abu Dhabi and owner of GF seems that it will present a public offering this year in the US stock market with an IPO of between 20 billion dollars and 30 billion dollars of dollars.
Coincidence in full shortage of semiconductors worldwide? Complicated to say and very easy to misthink, but in any case IBM had to restructure its entire roadmap and had more than demonstrable delays, so its processors and System Z systems will have the key to recover the economic damage, specifically 1,5 $ 1 billion for the transfer of Microelectronics and $ 1 billion for selling assets.