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Analysts foresee GlobalFoundries-IBM deal

Posted: 17 Jul 2012 ?? ?Print Version ?Bookmark and Share

Keywords:GlobalFoundries? IBM? Future Horizon? Hynix/Micron? 450mm wafer processing?

Future Horizon has forecasted that GlobalFoundries will buy IBM's semiconductor division, and that Hynix/Micron will buy up the remaining memory firms. These comments were included in a call for the EU to fund the costly transition to 450mm wafer processing, the firm noted.

With margins in the foundry business shrinking, and chip costs dropping, the transition to 450mm, which is expected to cost US$10 billion in initial investment per fab, is out of reach for many of the smaller players.

Like previous step-ups, this transition is expected to result in a consolidation of the market, with smaller firms being gobbled up by bigger ones, which is what Future Horizon analysts are predicting.

According to the analysts, IBM has a history of axing low-margin businesses. However, it is expected to enter the 450mm market and profit from the technological edge for a few years before selling the business to GlobalFoundries.

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