Globalfoundries has reiterated its focus on providing differentiated foundry services on a contract basis, and intends to keep all its existing manufacturing facilities worldwide to support its core operations, according to the company.

Rumors have started circulating again in the chipmaking industry on whether Globalfoundries will exit the contract manufacturing business.

Globalfoundries indicated its recent facility and asset sales were meant to improve the company's financial structure and re-position it as a differentiated foundry.

Globalfoundries in August 2018 disclosed a decision to pivot away from 7nm technology development, as part of the company's efforts to reshape its technology portfolio to intensify its focus on delivering differentiated offerings for clients in high-growth markets. Therefore, the pure-play foundry has shifted development resources to make its 14/12nm FinFET platform more relevant to many of its clients.

The sale of its ASIC business is another example of Globalfoundries' commitment to focus on its core business, said the pure-play foundry, adding that the sale helps it establish a strategic partnership with Marvell, which is gearing up for the 5G base station market boom. Marvell is looking to create a leading ASIC supplier for wired and wireless infrastructure, through its up to US$740 million acquisition of Avera Semiconductor that is expected to close by the end of Marvell's fiscal year 2020.

Avera Semi was set up in November 2018 as a wholly-owned subsidiary of Globalfoundries dedicated to providing custom ASIC solutions. Avera previously was part of IBM's Microelectronics business.

The sale of Avera Semi will bring Globalfoundries an opportunity to capitalize on 5G infrastructure and base stations, given that the deal Globalfoundries has reached with Marvell includes a new long-term wafer supply agreement between the two companies. "We look forward to becoming a strategic provider for Marvell for decades to come," Globalfoundries CEO Tom Caulfield said in a company's statement about its Avera sale.

Globalfoundries in April 2019 announced plans to sell its 300mm fab located in East Fishkill, New York to ON Semiconductor for US$430 million. Earlier this year, Globalfoundries reached another deal with Vanguard International Semiconductor (VIS) under which VIS will acquire Globalfoundries' Fab 3E in Tampines, Singapore for US$236 million.

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