[kragen]

I thought it was a bad decision at the time, but it does seem like a defensible one to me, for three reasons.

First, nobody knew if even TSMC was going to succeed at bringing a 7nm process to market. 02018 was maybe the height of the "Moore's Law is over" belief. There was a lot of debate about whether planar semiconductor scaling had finally reached the limit of practical feasibility, although clearly it was still two orders of magnitude from the single-atom physical limit, which had been reached by Xie's lab in 02002. Like Intel, SMIC didn't reach 7nm until 02023 (with the HiSilicon processor for Huawei's Mate60 cellphone) despite having the full backing of the world's most technically productive country, and when they did, it was a shocking surprise in international relations with the US.

Second, even if GF had brought 7nm to market, there was no guarantee it would be profitable. The most profitable companies in a market are not always the most technically advanced; often the pioneers die with arrows in their backs. If you can make 7nm chips in volume, but the price for them is so high that almost everyone sticks with 12nm processes (maybe from your competitors), you can still lose money on the R&D. Moore's Law as originally stated in "Cramming" was about how the minimum price per transistor kept moving to smaller and smaller transistors, and historically that has been an immensely strong impetus to move to smaller processes, but it's clearly weakened in recent years, with many successful semiconductor products like high-end FPGAs still shipping on very old process nodes. (Leaving aside analog, which is a huge market that doesn't benefit from smaller feature size.)

Third, we don't know what the situation inside GF was, and maybe GF's CEO did. Maybe they'd just lost all their most important talent to TSMC or Samsung, so their 7nm project was doomed. Maybe their management politics were internally dysfunctional in a way that blocked progress on 7nm, even if it hadn't been canceled. There's no guarantee that GF would have been successful at mass production of 7nm chips even in a technical sense, no matter how much money they spent on it.

In the end it seems like GF lost the bet pretty badly. But that doesn't necessarily imply that it was the wrong bet. Just, probably.

[chasil]

As far as I know, Global Foundries ceased efforts at 7nm and lower because they could not afford it.

They had previously signed a contract with IBM to produce silicon at these more advanced nodes that they could not honor, and there was legal action between them.

https://www.anandtech.com/show/13277/globalfoundries-stops-a...

https://newsroom.ibm.com/2025-01-02-GlobalFoundries-and-IBM-...

[rusticpenn]

Yeah and IBM had to move their designs in the last minute from GF to Samsung. I have heard that the Samsung process was much better and the tech transfer was easier than expected.

[hedgehog]

First, you point out that Moore's law was about the transistor count per chip at the optimum cost process, and that's very important. We have transitioned from a more-for-less leading edge to a more-for-more leading edge. It's overall sensible for Apple to build giant chips on the newest processor not because it's cheaper but because it gives them an overall more competitive product (they only sell whole devices). Just because Apple and Nvidia keep making bigger chips doesn't mean that Moore's law is working the way it was originally proposed (Intel's marketing department notwithstanding).

In any case, at the time and still I think GF was probably correct in that they would not be able to compete at the leading edge and make money at it. Remember, AMD and IBM separated fabs out for a reason and not having the scale necessary to compete was probably a big part of that. AMD has succeeded on TSMC and IBM seems to be doing ok on Samsung. Most chips are not at the leading edge and don't need to be, and so most fabs don't need to be leading edge to serve customers. There are all kinds of applications where a more mature and better characterized process is better, whether for harsh environments, mixed signal applications, or just low volume parts where $20M of tooling cost is not worth it.