This article examines the impact to Taiwan Semiconductor Manufacturing Company
(TSMC) when GlobalFoundries is formed. GlobalFoundries is a company consisting of
AMD’s wafer manufacturing facility with Chartered Semiconductor Manufacturing, Inc.,
being financed by ATIC of Abu Dhabi. While AMD and Chartered have been the distant
follower in their respective market segment, with Abu Dhabi’s financial resources, there is
potential for the new GlobalFoundries to make advances in the foundry business. TSMC has
been the world leader in semiconductor manufacturing foundries for many years.
This article performs the analysis in three stages. First, the history of TSMC and
GlobalFoundries is discussed. This will explain why GlobalFoundries came to existence with
the merger of AMD manufacturing facilities, ATIC and Chartered Semiconductor
Manufacturing, Inc. In the second stage, a brief overview of the foundry industry is discussed.
This will set the stage of how TSMC and GlobalFoundries can compete in the future. At the
last stage, we attempt to analyze TSMC and GlobalFoundries in terms of resources, market
share, and marketing effort to see if GlobalFoundries has a chance of success in the foundry
industry.

This article examines the impact to Taiwan Semiconductor Manufacturing Company
(TSMC) when GlobalFoundries is formed. GlobalFoundries is a company consisting of
AMD’s wafer manufacturing facility with Chartered Semiconductor Manufacturing, Inc.,
being financed by ATIC of Abu Dhabi. While AMD and Chartered have been the distant
follower in their respective market segment, with Abu Dhabi’s financial resources, there is
potential for the new GlobalFoundries to make advances in the foundry business. TSMC has
been the world leader in semiconductor manufacturing foundries for many years.
This article performs the analysis in three stages. First, the history of TSMC and
GlobalFoundries is discussed. This will explain why GlobalFoundries came to existence with
the merger of AMD manufacturing facilities, ATIC and Chartered Semiconductor
Manufacturing, Inc. In the second stage, a brief overview of the foundry industry is discussed.
This will set the stage of how TSMC and GlobalFoundries can compete in the future. At the
last stage, we attempt to analyze TSMC and GlobalFoundries in terms of resources, market
share, and marketing effort to see if GlobalFoundries has a chance of success in the foundry
industry.

ABSTRACT I
ACKNOWLEDGEMENT II
TABLE OF CONTENTS III
LIST OF FIGURES V
1 INTRODUCTION 1
2 INDUSTRY OVERVIEW 2
2.1 THE RISE OF FOUNDRY BUSINESS 2
2.2 TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY (TSMC) 3
2.3 ATIC 5
2.4 AMD 6
2.5 CHARTERED SEMICONDUCTOR MANUFACTURING, INC. 7
2.6 ESTABLISHING GLOBALFOUNDRIES 8
3 THE COMPETITION 10
3.1 RESOURCES 10
3.2 INVESTMENTS 10
3.3 MARKET SHARE 11
3.4 CUSTOMER RELATIONSHIP 11
3.5 MANAGEMENT TEAM 12
3.6 THE USE OF INDUSTRIAL ROADMAP TECHNOLOGY 13
3.7 TECHNOLOGY: THE BATTLE FIELD 14
3.8 MARKETING: GETTING PARTNERS AND CUSTOMERS TO SIGN ON, OIP VS COMMON PLATFORM 17
4 ANALYSIS 18
5 CONCLUSION 21
EXHIBIT 1: COST OF SEMICONDUCTOR FABS 23
EXHIBIT 2 TOP 10 MAJOR SEMICONDUCTOR FOUNDRY COMPANIES 24
EXHIBIT 3 MORRIS CHANG BRIEF HISTORY 25
EXHIBIT 4 MARKET SHARE OF INTEL VS AMD 26
EXHIBIT 5 FINANCIALS OF CHARTERED SEMICONDUCTOR MANUFACTURING, INC. 27
EXHIBIT 6 GLOBALFOUNDRIES AND TSMC MANAGEMENT TEAM 28
SELECT GLOBALFOUNDRIES MANAGEMENT TEAM 28
SELECT TSMC MANAGEMENT TEAM 30
EXHIBIT 7 INSTALLED CAPACITY OF TSMC, UMC AND GLOBALFOUNDRIES 31
INSTALLED CAPACITY OF TSMC 31
UMC QUARTERLY CAPACITY 32
GLOBALFOUNDRIES CAPACITY 33
EXHIBIT 8 MARKET SHARE OF FOUNDRIES 34
EXHIBIT 9 COMMON PLATFORM PARTNERS 35
REFERENCE 37

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2 GlobalFoundries Press Release September 6, 2009
3 GlobalFoundries Press Release September 6, 2009
4 GlobalFoundries Press Release January 13, 2010
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31 Compiled from GlobalFoundries website
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