The Chinese government has stepped in to put a Globalfoundries joint venture 12-inch fab project on ice.
A deal between Globalfoundries and the government was struck in the middle of the year, but according to Digitimes the Chinese appear to have got cold feet.
Under the deal, Globalfoundries would be responsible for 12-inch manufacturing tools to upgrade a wafer fab provided by the government. GloFo wanted to start producing 12-inch wafers at the facility in 2017, using the foundry's technologies and used 40 nm gear from its Singapore Fab.
But the Chinese are a little upset that Globalfoundries is expected to own 51 percent of the JV fab by just paying for the equipment. The government has now argued that Globalfoundries' total equipment expenditure for the fab is too cheap to obtain the 51 percent stake in the JV, the sources noted.
At the moment it looks like the deal will fall flat becuase GloFlo is also not giving ground. Digitimes thinks that the government is reviewing the direction of the proposed JV and is looking to find a better partner than Globalfoundries.
Reply With Quote
Bookmarks