News GlobalFoundries spins off custom semi business

That certainly sounds like GloFo is looking to get out of the fab business altogether once existing orders drop below break-even levels. By spinning off the design service they get to keep a bit of the revenue from existing customers who would be looking to migrate away from GloFo otherwise, and don't have a fab business hanging around their ankle to weigh them down with massive capex.

 

General sentiment for fabs isn't looking great, is it? Intel is struggling, the memory manufactures are facing increasing pressure from Chinese competition and regulators closely watching their monopoly, GloFo is spinning off stuff...