Taking on TSMC
The other main purpose of this introduction was to demonstrate why GF has a viable business model. Grose asserted that the market for semiconductor foundries is expected to grow significantly. This is because the cost of semiconductor manufacturing goes up significantly with every new shrink in the process.
As a consequence of this, many more semiconductor companies are expected to make the switch AMD did and become ‘fabless'. Referring to fabs, Grose said: "There will only be a few innovators left standing, on an alliance basis. We're focusing on leading edge technology."
Grose explained that the way GF is going to win business from its biggest competitor - Taiwanese foundry TSMC - will be by offering superior manufacturing technologies. "Our growth priorities are to establish a solid number two position and to generate revenue to reinvest in future technologies," he said. "We're pretty much ready for 32nm and 28nm on a bulk basis."
