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GlobalFoundries did not formally say it had “killed” 7nm. On August 27, 2018, it announced that its 7nm FinFET program was on hold indefinitely, while it shifted development resources toward 14/12nm FinFET and differentiated technologies. It also said its ASIC business would become a wholly owned, independent subsidiary; two months later, it introduced that business as Avera Semiconductor.
What GlobalFoundries announced in August 2018
GlobalFoundries (GF) said it was pausing 7nm FinFET development indefinitely and concentrating development resources on its 14/12nm FinFET platform and differentiated offerings. The company pointed to customer demand and its expectation that customers would seek more value from each process generation. Its investment priorities included RF, embedded memory and low-power features, as well as FDX, RF SOI, high-performance SiGe and analog/mixed-signal technologies. GF’s August 27, 2018 announcement also said the change would involve workforce reductions, with some technologists redeployed.
CEO Tom Caulfield described the strategy as giving nodes longer useful lives: “Essentially, these nodes are transitioning to design platforms serving multiple waves of applications, giving each node greater longevity.”
Why “kills 7nm” needs qualification
“Kills 7nm” is shorthand for the practical effect of the decision, not GF’s formal description. The company said “on hold indefinitely.” That wording establishes an indefinite pause, but it does not establish that GF announced a permanent cancellation or a restart date.
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The pause marked a reversal from the company’s 2017 roadmap. On June 13, 2017, GF announced its 7nm Leading-Performance (7LP) FinFET technology, claimed a 40% generational performance boost, and said design kits were available. It forecast initial customer products for the first half of 2018 and a volume-production ramp in the second half of 2018. Those were projections made at the time; the cited announcement does not establish whether they were achieved. GF’s 2017 7LP announcement documents that earlier plan.
That same day, GF announced FX-7, a 7nm ASIC platform for data center, machine learning and 5G applications, with volume production forecast for 2019. This was also a plan, not evidence that production began. The FX-7 announcement describes the intended offering.
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What changed in the ASIC business
GF said its ASIC business would become a wholly owned subsidiary, independent from the foundry business. The stated purpose was to build on GF’s ASIC design and IP expertise and let the business serve a broader customer base, including customers using alternative foundries at 7nm and beyond.
In October 2018, GF introduced that subsidiary as Avera Semiconductor LLC. At launch, Avera was described as offering custom ASIC work on GF’s 14/12nm and older technologies, while also providing access to alternative foundry processes at 7nm and beyond. This was the launch description; it does not establish Avera’s present-day ownership or operating status. GF’s October 31, 2018 Avera announcement gives the company’s stated scope.
How the two routes differed
| Route | Process and foundry access | Business scope | Stated focus |
|---|---|---|---|
| GF foundry | GF’s 14/12nm FinFET and differentiated or older technologies | Semiconductor manufacturing and process platforms | Developing differentiated offerings and extending the usefulness of established nodes |
| Avera ASIC business at launch | GF processes at 14/12nm and older nodes, plus access to alternative foundries at 7nm and beyond | Custom ASIC design and related IP expertise | Serving ASIC customers across GF and alternative foundry processes |
Workforce impact
Eurofound’s 2018 restructuring factsheet reported 900 planned job losses, about 5% of GF’s workforce, associated with the strategy shift. Eurofound also reported redeployment as part of the change. These are figures attributed to Eurofound, rather than figures stated in GF’s announcement. Eurofound’s restructuring factsheet provides that account.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What Avera reported at launch
GF’s October 2018 announcement presented Avera with the following company-reported scale figures. They describe the business at launch, not current metrics or independently verified results.
Quick Recap
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- More than 2,000 complex designs over its 25-year history.
- More than 850 employees.
- Annual revenues in excess of $500 million.
- Over $3 billion in 14nm designs in execution.
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