Some Idiot Sold NOL and Now Freight is Booming

[Cottonmouth]

This useless fat fuck Ng Yat Chung should be flogged.

 

[batman1]

But that idiot is a talent.

 

[batman1]

This useless fat fuck Ng Yat Chung should be flogged.

 

[mudhatter]

morons only good at studying solutions presented by ang moh kias in textbooks

got no brains or originality

 

[LITTLEREDDOT]

Shipping costs soar as Russian fallout upends global fuel flows​

Rates to haul fuels such as gasoline and diesel have more than doubled this year to the highest since April 2020. ST PHOTO: CHONG JUN LIANG

June 23, 2022

SINGAPORE (BLOOMBERG) - The dislocation of global fuel markets after Russia's invasion of Ukraine has boosted the cost of shipping products such as diesel by sea.
Rates to haul fuels such as petrol and diesel, known in the industry as clean tanker freight, have more than doubled this year to the highest since April 2020, according to Baltic Exchange data.
On one key route in Asia, ship owners are now earning more than US$49,000 (S$68,000) a day transporting products from South Korea to the distribution hub of Singapore, compared with US$98 a day prior to the war.
The Russian invasion has exacerbated a tightening of energy markets, upending trade flows and forcing buyers to scour the world for alternative fuel supplies. An initial surge in rates for hauling crude has not been sustained, partly due to reduced demand from China, leading to some ship owners switching part of their fleet to haul fuels rather than oil, according to two tanker charterers.
Clean tanker freight rates were last at this elevated level in early 2020, after the coronavirus pandemic decimated oil consumption and forced fuel producers to export as much product as possible to alleviate swelling storage tanks.
Demand for ships to haul fuels are expected to climb by 6 per cent this year, underpinned by Europe, said Mr Anoop Singh, head of tanker research at Braemar ACM Shipbroking.
"The European resolve to reduce reliance on Russian supplies will likely outlive the war in Ukraine and that will re-draw trade routes," said Mr Singh. Russia was the single largest external supplier of diesel to Europe prior to the war.

Since the invasion in late February, more long-range class ships are being used to transport refined fuels, according to S&P Global Commodity Insights analysts Fotios Katsoulas and Krispen Atkinson.
Longer voyages are reducing the amount of available capacity on vessels and driving up freight rates, they said. Long-range tankers are the most common and are used to carry both products and oil.
The surge in rates is being replicated across other regions.
Ship owners transporting fuel from the Middle East to Japan on a route known as TC-5 - a key passage for naphtha - were earning more than US$56,000 a day on Tuesday, compared with as low as US$61 a day in February, according to Baltic Exchange data.
The cost of shipping fuel from the US to Brazil on the TC-18 route was at US$37,000 a day, up from US$3,800 a day four months ago.

 

[LITTLEREDDOT]

Global port congestion, high shipping rates to last into 2023: Industry execs​

A cargo ship loaded with containers at a Qingdao port in China's Shandong province on June 9, 2022. Charterers are urged to sign longer-term contracts with shipowners to overcome issues of volatile cost and availability. PHOTO: AFP


JUN 16, 2022

SINGAPORE (REUTERS) - Global port congestion is set to continue until at least early 2023 and keep spot freight rates elevated, logistics executives said on Wednesday (June 15), urging charterers to switch to long-term contracts to manage shipping costs.
The Covid-19 outbreak has lengthened ship delivery times since 2020, pushing up freight costs, while the Russia-Ukraine conflict and lockdowns in Shanghai have added to supply chain disruptions this year.
"We believe the current congestions, not only the ports but also the landside infrastructure, will be there at least till Q1 2023," said Mr Peter Sundara, head of global ocean freight product for the global logistics division at Visy Industries.
While more vessels could be added to the global fleet next year, this does not mean that freight rates will drop broadly as it depends on how ship carriers allocate increased vessel capacities, he told the S&P Global Platts Bunker and Shipping Summit.
Mr Eric Jin, head of investment support at industrial equipment supplier BMT Asia-Pacific, said rising shipping costs, longer transit times and higher uncertainty will be the "new normal" for the shipping industry.
Spot chartering rates have held firm so far this year, with supply chain disruptions and port congestion affecting ships globally, particularly in the United States and China.
The executives recommended charterers sign longer-term contracts with shipowners to overcome issues of volatile cost and availability.

It is "no longer a case of going for three months or six months, one month, not even one year, but two to three years... because we want certainty in cost and certainty in space", said Mr Sundara.
BMT's Mr Jin said more than 60 per cent or 65 per cent of shippers were remaining on spot rates.
"This means they are not taking measures to deal with the new situation, this means they are prone to full supply chain risks," he added.

 

[LITTLEREDDOT]

What about Chartered Semiconductor????

For local semiconductor equipment maker, it’s hip to make chips​

As global microchip demand soars, semiconductor equipment firm NexGen Wafer Systems is expanding overseas and innovating to meet the need​

Mr Cheung Ting Kwan, chief executive of NexGen Wafer Systems, is carefully steering the company's growth amid a surge in demand for microchips. PHOTO: THARM SOOK WAI
Feng Zengkun, SPH Content Studio


NOV 12, 2021

The tiny but mighty microchip is at the heart of every tech tool that powers your life - from smartphones and electric vehicles to 5G networks and solar panels.
It is also the force that drives NexGen Wafer Systems' expansion. The company develops and sells machines that add circuits to wafers, a crucial step in creating microchips.
NexGen was founded by chief executive Cheung Ting Kwan, 45, and three others in 2011. As a veteran in the industry, Mr Cheung brings with him not just knowledge about chips, but also effective leadership.
He recalls the hardship he endured when, at 27, he started his first company providing services to semiconductor companies. "The early years were tough. I was single then and even slept in the office so I didn't have to pay for a home. It taught me a lot about determination, how you have to keep going even when you really want to give up."
He has since taken a step back from the company to focus on NexGen, his second business venture.
Mr Cheung's experience in adversity was useful in managing the uncertainties when the Covid-19 pandemic struck last year. "We didn't know what would happen to our (semiconductor) industry," he says.
"Thankfully, our sector recovered, and there is even more demand than before for microchips and the machines that make them. This is a great chance for us to grow our business."

The global shortage of chips - triggered by the pandemic and exacerbated by the high demand for consumer electronics - has affected production for everything from smartphones to cars.
Demand could continue to outpace supply, as cities and firms invest in electric vehicles, 5G networks, and other products and infrastructure that require the chips. In January, NexGen came up with a five-year plan to make the most from the dynamic opportunity.
NexGen has also started research and development (R&D) projects to create more applications for its machines, including at a new joint laboratory in Singapore with the Agency for Science, Technology and Research's Institute of Microelectronics (IME).

When Mr Cheung co-founded NexGen, it was one of the first in Singapore to focus on equipment to put circuits on wafers. He resolved to make it a success.
His perseverance has paid off. Revenue has grown by about 20 per cent annually over the past five years, and is expected to improve even further in the coming years.

A global plan for growth​

NexGen's story is one of strategic global expansion, with Mr Cheung carefully steering the company's growth.
When he and his three co-founders, which includes two Austrians, created the company, they set up an office and a factory in Austria to take advantage of the country's engineering talent.
"Austria has a very strong engineering base, with many veterans in mechanical, electrical and other fields of engineering. It also has a well-established supply chain, which enabled us to get off the ground quickly."
With NexGen's business in the US growing in recent years, he opened an office in New York in May with the support of enterprise development agency Enterprise Singapore (ESG). Next in the pipeline: Offices in China and Japan.

NexGen Wafer Systems, headquartered in Singapore, is expanding overseas amid the global microchip shortage. PHOTO: THARM SOOK WAI
"Our goal is to have regional offices and dedicated staff for every market that we are in, so that we can scale up our business more easily and better support our customers," he says.
Besides entering new markets, NexGen will also expand its factory in Austria and open a second one, possibly in Singapore, to quadruple its manufacturing capacity. This will be its first factory located outside of Austria. It plans to hire more people, both in Singapore, which houses its global headquarters, and overseas.

Innovating for the future​

Looking ahead, NexGen will expand its range of offerings. It set up a joint laboratory with IME in May to develop new applications for its machines. ESG helped connect the two partners.
Mr Cheung explains the need to keep innovating: "New microchips are being created every day. These include new chips for the image sensors that allow self-driving cars to 'see'. You also have chips that are being made out of new and emerging materials, such as silicon carbide and gallium nitride.

NexGen chief executive Cheung Ting Kwan firmly believes in the need to keep innovating. The company is exploring new applications for its machines, which add circuits to wafers. PHOTO: THARM SOOK WAI
"If we want to grow, we need to make sure that our machines can support these new kinds of chips. That's the focus of our laboratory with IME. We want to have new capabilities that we can show to our customers and use to differentiate ourselves in the market."
It is also tapping on ESG's network, as it considers working with other firms to design new products and technologies.
Mr Cheung's advice for other businesses, especially small and medium-sized enterprises (SMEs): Continue to find ways to improve.
"If you stand still in the marketplace, other firms will overtake you. Always strive to be better," he says. "Keep an open mind. Learn, upskill and change to stay ahead of the curve."
If you stand still in the marketplace, other firms will overtake you. Always strive to be better. Learn, upskill and change to stay ahead of the curve.
MR CHEUNG TING KWAN, chief executive, NexGen Wafer Systems

Helping hands in foreign lands​

When NexGen wanted to set up an office in the US, it reached out to ESG's overseas centre in New York for advice. The New York overseas centre is part of ESG's global network with a presence in over 35 cities, helping Singapore businesses like NexGen expand into new markets.
Mr Cheung explains: "Even though the US is one of the friendliest places for businesses, it's still not easy for Singaporean firms. You have to know how to handle things like sales and income taxes, which are different in different states, and health insurance for employees."
ESG's New York overseas centre connected NexGen to a lawyer who walked it through the necessary legal and corporate processes and requirements. The agency has assisted the company in other ways, including by introducing it to potential partners for financing and R&D projects.
SMEs should seek assistance when they need it, he says, especially if they are aiming to enter overseas markets. "We really benefited from ESG's help."

At a glance​

Markets: Singapore, Malaysia, Europe, the US, China and Japan
Manpower: 64
Annual revenue growth: Average of 20 per cent in the past five years

 

[LITTLEREDDOT]

Shipping (NOL) and semiconductor (Chartered Semiconductor) are not sunset nor tough industries. The companies need to be run by the right management. In NOL and Chartered's case, it was poor leadership from wrong management.

Semiconductor industry booming but firms say hiring is not easy​

Applied Materials engineers work on the latest technology to help enable faster, more efficient microchips. PHOTO: COURTESY OF APPLIED MATERIALS

Sue-Ann Tan


NOV 14, 2020

SINGAPORE - The semiconductor sector is booming and continues to offer good job opportunities despite the economic downturn caused by the Covid-19 pandemic.
Problem is, not enough people are signing up to join the industry, the Singapore Semiconductor Industry Association told The Straits Times.
It might be because the concept behind them sounds very technical - but semiconductors are everywhere, from cars to the ubiquitous mobile phone, noted the association.
Its executive director Ang Wee Seng said: "Singapore is home to a rich semiconductor ecosystem, (from) manufacturing to research and development activities across the full value chain.
"The industry continues to create good and diverse job opportunities for locals; and offers a variety of roles - both technical and non-technical - that cater to people with different strengths."
This includes research and development jobs for technical and innovative engineers, manufacturing roles for those who are more process and operations driven and business roles for those who want to engage with international executives and be part of a global supply chain.
Openings are available at all levels - there are vacancies for interns, fresh graduates, mid-career workers and diploma holders.

He added that the pandemic has accelerated digitalisation efforts, ensuring the sector continues to grow.
The electronics industry contributes roughly one third to Singapore's manufacturing output.

Engineers at Applied Materials wearing "Bunny Suits" and examining nanostructure of an organic molecule inside cleanroom. PHOTO: COURTESY OF APPLIED MATERIALS
The electronics sector posted growth for the third straight month last month, according to the latest reading by the Singapore Purchasing Managers' Index, which is a key measure of factory activity.


The semiconductor cluster also grew 37.4 per cent in September according to preliminary figures, compared with the year before.
There are more than 2,800 job and traineeship opportunities in electronics, according to the Ministry of Manpower's jobs situation report that was released last month.

The industry employs around 70,500 workers specialising in semiconductor, consumer electronics and information technology.
Mr Wee said: "Companies are very happy to hire and train talent. However, there is a general lack of awareness of what the semiconductor sector is about and the jobs available. There is a perception that this industry is not as attractive and it's an old-fashioned manufacturing sector. They may not realise the industry is actually the enabler and backbone of all technology solutions."
Companies said that job seekers' perceptions of the sector and competition among firms are two main challenges in hiring new employees.
Applied Materials, a company supplying equipment and software for the manufacturing of semiconductor chips, has career opportunities for both technology and engineering, and operations and business talents. These include roles in data science and research and development. On the business side, there are openings in supply chain related roles.
Mr Brian Tan, the firm's vice president for Applied Global Services and regional president for South-east Asia, said: "Some people perceive the semiconductor industry as a mature industry; however, it's quite the opposite. The semiconductor industry is dynamic and exciting, driving enabling technology macrotrends such as The Internet of Things, Big Data and artificial intelligence.
"This leads to a new wave of growth and opens up many exciting opportunities for the industry in the years ahead. The challenge is ensuring that talented individuals are aware of these opportunities."

He added that there is competition for talent in the high-tech industry, as more companies look to add expertise in data science and machine learning.
"Greater awareness of exciting opportunities in the sector and the impact of our work are key (to attracting talent). Semiconductors play a crucial role in advancing the game-changing technologies of the future."
Sensor solutions supplier ams has around 100 job openings here for professionals, managers, executives and technicians. They include technical roles, support functions and even management roles.
Mr Soh Lip Leong, ams senior vice-president and general manager of Asia back-end operations and global test, said: "We require a wide range of skills and are often looking for deep experts in their field. In Singapore, there is a highly-skilled and highly educated workforce. Due to this, there are a number of global companies who have operations here.
"Our goal is to attract and retain the talent we need through exciting potential employees about our innovative technology, offering a common purpose alongside the right kind of work environment and package."

 

[LITTLEREDDOT]

S'pore semiconductor firms boost capacity amid global chip crunch​

GlobalFoundries Singapore's highly automated cleanroom at its Woodlands facility. The company is ramping up capital expenditure to address the global demand for semiconductors. PHOTO: GLOBALFOUDNRIES SINGAPORE

Choo Yun Ting


JUN 4, 2021

SINGAPORE - Local players in the semiconductor industry are ramping up production capacity amid a worsening global chip shortage sparked by high demand from consumer electronics and automobile firms.
Singapore Semiconductor Industry Association (SSIA) executive director Ang Wee Seng told The Straits Times that the high demand is forecast to continue into next year with companies dealing with order backlogs that have more than doubled in 12 months.
Chip lead times - the period between placing an order and its delivery - increased to 17 weeks in April, the longest since it started tracking data in 2017, according to research by Susquehanna International Group.
Firms in Singapore are therefore investing in new equipment, enhancing their facilities and recruiting more staff to tackle the shortages, said Mr Ang.
Examples include major contract chip manufacturer GlobalFoundries Singapore, which is increasing its capital expenditure; and smaller players such as NexGen Wafer Systems, which is renovating its facilities here.
The global chip crunch has worsened on the back of overwhelming demand for Internet and mobile computing, which has in turn led to shortages of the semiconductors used in products such as smartphones, cars and televisions.
The demand has spilled over to Singapore, with the Economic Development Board on May 25 noting that strong capital investment in the global chips industry led to higher production of semiconductor equipment here in April.

Geopolitical tensions between the United States and China have also spurred excessive stockpiling of chips, contributing to the supply shortfall.
While Taiwan, home to the world's leading provider of cutting-edge semiconductors, has seen a recent resurgence of Covid-19 cases that observers fear could endanger chip supply, it is unlikely to affect Singapore's firms significantly, said Mr Ang.
Mr Ang Kay Chai, GlobalFoundries senior vice-president and head of global fab operations, said the firm's orders have been overwhelming since the third quarter of last year and its wafer fabrication plants (fabs) are all fully loaded for the rest of the year.

GlobalFoundries Singapore serves sectors such as automotives and security.
"This trend will continue for the next two to three years as companies, including GlobalFoundries, add additional capacity to meet the world demand," he added.
"It is highly capital-intensive and takes between 12 and 18 months to add more capacity."
GlobalFoundries' Mr Ang said the company is doubling its annual average in capital expenditure to address the demand-supply mismatch.
He added that GlobalFoundries is "in allocation mode" and starts wafers only for customers that have placed orders.
MORE ON THIS TOPIC
Chip shortage forcing carmakers to leave out some high-end features
Global chip shortage hits Apple, Samsung and Ford as crisis worsens
Firms supporting semiconductor manufacturers are similarly squeezed by the demand surge and are trying to expand capacity.
NexGen Wafer Systems, which makes equipment for producing semiconductor wafers, is renovating its production facilities so it can lift output by 25 per cent, said chief executive Cheung Ting Kwan.
It has also been trying to boost its 60-strong workforce but hiring has been a challenge given the mismatch in skill levels, he said. Jobs on offer include software developers as well as electrical and mechanical design engineers.
NexGen Wafer Systems, which makes about four machines every quarter, has an order book that takes it into the second quarter of next year.
Mr Cheung said its customers, which are facing a surge in demand for chips, have been anxious to try to speed up equipment delivery but the home-grown firm's hands are tied. "We can serve only whoever places their order first," he said.
Mr Chung Kum Pang, managing director and chief executive at equipment maker Component Technology, noted that its turnaround time has risen from under three months to three to four months now.
The firm, which manufactures products such as wafer inspection machines, said that equipment takes longer to be produced, owing to delayed delivery of components such as printed circuit boards.
"Now, we place larger orders and in advance to stock up on components, but we also don't want to over-purchase as technology gets upgraded very quickly and some parts could become obsolete," said Mr Chung.


SSIA's Mr Ang noted that in the short term, chip shortages mean consumers could face a longer wait for electronic goods such as game consoles and computer displays.
If these shortages are not addressed, electronics makers will look at reconfiguring supply chains and seek other fabricators that can provide the chips they need.
"This is one reason why fabricators are ensuring they reduce these backlogs as soon as possible, and help their customers meet their supply demand mid- to long-term by expanding their fabrication capacity," he said.

 

[LITTLEREDDOT]

Semiconductors, pharma biotech set to attract more investment into S'pore: EDB chairman​

Pharma giant Sanofi Pasteur is investing $639 million to build a vaccine production centre here. PHOTO: SANOFI

Prisca Ang


AUG 17, 2021

SINGAPORE - The semiconductor and pharmaceutical biotechnology sectors have thrived amid the Covid-19 pandemic and are expected to keep attracting global investments into the Republic, said Singapore Economic Development Board (EDB) chairman Beh Swan Gin on Tuesday (Aug 17).
Recent investments by industry giants are telling: Semiconductor manufacturer GlobalFoundries announced in June that it would invest US$4 billion (S$5.4 billion) in a new fab, or manufacturing plant.
Vaccine maker BioNTech will set up its South-east Asia regional headquarters and an mRNA manufacturing facility in Singapore, while pharma giant Sanofi Pasteur is investing €400 million (S$639 million) to build a vaccine production centre here.
"The semiconductor industry seems to continue to have very strong tailwinds because of the overall digitalisation of industries and the economy, and the electrification that's taking place in many sectors like the automotive sector," Dr Beh told reporters in a virtual interview held in conjunction with EDB's 60th anniversary.
Companies that produce medical devices such as polymerase chain reaction (PCR) machines are also doing well and expanding capacity amid the pandemic-driven demand, he added.
The technology sector is also doing well, with American as well as Chinese tech companies, like ByteDance and Tencent, having expanded their presence in South-east Asia and Singapore, said Dr Beh.
And local firms are not left out of this growth spurt either, with biotech companies and tech firms raising a "substantial amount" of venture capital funding and ramping up their activities and hiring, he added.

But Singapore will have to navigate several "drivers of change" and transform itself to keep growing, said Dr Beh. The first consideration is the rise of Asia, which has contributed much to Singapore's economic success.
"Asia is definitely a major part of our operating landscape today, much more so than even as late as a decade ago," said Dr Beh, adding that the Republic has seen capital inflows from Asian companies, and local businesses are also keen to tap the pockets of talent in many parts of the region.
Technological advancements - accelerated by the coronavirus outbreak - have also disrupted many industries and enabled young companies to scale up and become industry leaders.


Dr Beh said another driver of change is the shifting geopolitical environment, including the United States-China contestation: "Many countries have become a bit less enthusiastic about globalisation... I won't call it a reversal of globalisation but it's definitely a slowdown."
Countries, including Singapore, also have to address climate change and take measures to decarbonise businesses and economies, as well as spur innovation.

EDB chairman Beh Swan Gin said that Singapore will have to navigate several "drivers of change" and transform itself to keep growing. PHOTO: EDB
The Republic needs to respond to these trends by shifting from an investment-driven economy to one with Singapore-based regional leaders that have innovative products and services, said Dr Beh, citing tech firms Sea and Grab as examples.
Asked about the impact of regional Covid-19 resurgences on Singapore's economic growth, he said there are lingering uncertainties such as new waves of Covid-19 Delta variant infections in the country's trading partners and possible new variants.
But Singapore will continue to diversify its sources of investments as well as the markets and industries of its trading partners, to mitigate these risks, he said.
The Republic's small population is also attractive to global vaccine makers, as the production capacities of their potential manufacturing facilities can easily exceed the vaccine needs of the local population, and they are therefore less worried about export controls.

"It will definitely help us to have early access to vaccines in the future if new pandemics emerge," said Dr Beh.
He added that the growth of local biotech companies and new technologies makes it "not unimaginable" that these local firms can create either therapeutic treatments or vaccines effective against Covid-19.
"Having said that, Covid-19 might end soon and there might not be a need for new vaccines... then that window of opportunity might not be there."
Asked how Singapore will be affected by a landmark deal to back a global minimum corporate tax rate of at least 15 per cent, Dr Beh reiterated EDB's stance that it supports a multilateral effort to create a level playing field for attracting investments.
But he added that tax incentives are not unique to Singapore and have therefore "not been a differentiator for a long time".
"We are quite comfortable and confident that over the past five, six decades of development, Singapore has built up very strong value propositions that can attract companies to come... Companies are here for Asia, and not just choosing a location that allows them to maximise their profits."

 

[LITTLEREDDOT]

Chip giant GlobalFoundries to create 1,000 jobs in S'pore, with new plant on track to open in 2023​

GlobalFoundries' new facility will include 250,000 sq ft of cleanroom space and new administrative offices. PHOTO: GLOBALFOUNDRIES

Rosalind Ang

June 23, 2022

SINGAPORE - GlobalFoundries is set to create about 1,000 jobs, including new roles for technicians and engineers, with the semiconductor giant's new manufacturing plant here on track to be operational in 2023.
The company on Thursday (June 23) moved its first tool into the plant, which is located in its existing Woodlands campus. The new facility will include 250,000 sq ft of cleanroom space and new administrative offices.
A cleanroom is a controlled environment where pollutants like dust, airborne microbes, and aerosol particles are filtered out in order to provide the cleanest area possible. Most cleanrooms are used for manufacturing products such as electronics, pharmaceutical products, and medical equipment.
GlobalFoundries' investment is in partnership with the Singapore Economic Development Board (EDB) and co-investments from customers. The plant is being built amid a global chip shortage.
Once complete, the new facility will have the capacity to manufacture 450,000 wafers per year, bringing total capacity of the Singapore site to about 1.5 million wafers per year.
In June last year, GlobalFoundries said it would invest approximately US$4 billion (S$5.5 billion) to increase its production capacity to meet the increase in demand for semiconductor chips.
The company's chips are used in cars, smartphones, wireless connectivity equipment, Internet of Things (IoT) devices, and other applications.

The global shortage of critical semiconductors is likely to last at least through next year and perhaps longer, US Commerce Secretary Gina Raimondo had warned on May 31.
Dr Thomas Caulfield, chief executive officer of GlobalFoundries, said the company deals with material shortages by diversifying their sources both locally and internationally.
"If we see a potential shortage for one of our sources, we qualify another supplier for it," he said, adding that the company's turnaround time is around 90 days.
"From a ground-breaking event hosted virtually (in 2021) due to the global pandemic to today's first tool-in, we are delivering on our commitments to expand our global manufacturing footprint to meet the growing need in the marketplace for chips," he added.
Singapore accounts for about one-third of GlobalFoundries' revenue and serves about 200 customers such as semiconductor companies Cirrus Logic and Qualcomm.
The manufacturer has about 4,800 employees here, around a third of its global headcount.
GlobalFoundries has five wafer plants here and has committed US$8 billion in fixed asset investments since its acquisition of manufacturing company Chartered Semiconductors in 2010.

 

[LITTLEREDDOT]

Temasek sold Chartered Semiconductor and now semiconductor business is booming

Semiconductors are 'cool' again: GlobalFoundries CEO​

With his industry in a sweet spot amid proliferating chip demand, Thomas Caulfield is bullish about attracting talent.​

Dr Caulfield, CEO of GlobalFoundries, has set the firm a frenetic pace to match supply to the demand. ST PHOTO: GIN TAY

Ravi Velloor
Associate Editor

Aug 1, 2022

SINGAPORE - These are glory days for semiconductors, an industry that shot into global focus after supply chain disruptions during the pandemic and the attempts to decouple technologically from China highlighted how strategic the sector is to the resilience of major powers.
On Thursday, the US House of Representatives passed 243-187 a US$280 billion (S$386.4 billion) Bill aimed at boosting America's semiconductor manufacturing and competitiveness with China.
The Chips and Science Act of 2022 will spend US$53 billion on direct financial assistance to construct and expand microchip manufacturing facilities. It adds another US$24 billion in tax incentives and so forth.
"It is a strategic policy," says GlobalFoundries (GF) chief executive officer Thomas Caulfield. "I don't think anyone doubts that semiconductors are at the heart of the global economy and so it means supply chain security, economic security and sovereign security. For GF, it is not a matter of whether we will add to our US footprint, but when, and how fast. The Chips Bill will allow us to accelerate our plans."
Separately, Japan is poised to announce an R&D centre for next-generation 2-nanometre chips by the year end under a partnership with the United States in an effort to cement the supply chain and reduce dependence on Taiwan, over which superpower tensions are rising.
For the 63-year-old Dr Caulfield, whose microchips connect every cellphone in the world to a telecoms tower - if it is a 5G-enabled phone, you could even bet its chip was made in Singapore - all this excitement adds to the feeling of his industry being in a sweet spot.
"For the longest time, we were a compute-centric industry," he says. "Our growth cycles were linked to the release of Windows (software), or new x86 processors. Since the advent of the smartphone, we've now had the singularity of device and we can communicate, connect and control everything in our lives. That's spawned a whole new generation of use cases."

This proliferating demand for chips was slated to outstrip supply around 2024, but the pandemic accelerated the digital transformation. Meanwhile, supply chain issues around microchips that cost a few dollars were holding up production of US$50,000 cars and other goods.
Feature-rich chips are needed everywhere - into the embedded memory for security, Radio Frequency (RF) for connectivity, higher voltage for drive displays, and to help with precision battery management in cars. GF draws half its revenue from smart mobile devices across a range of applications.
Certainly, the firm, under Dr Caulfield, has set itself a frenetic pace to match supply to the demand.


Last week, it got permission from local officials to build a US$6 billion chip factory in Saratoga County, upstate New York, that will supply chips to car, smartphone and refrigerator makers.
Earlier this month, GF, which had earlier said it would focus manufacturing in Singapore, Germany and its US home, announced a joint venture with ST Microelectronics of Switzerland to build a jointly operated 300mm semiconductor manufacturing facility adjacent to ST's existing 300mm facility in Crolles, France.
The plant, slated to start production in 2026, will produce 620,000 300mm-thick wafers a year. Each wafer contains thousands of microchips. GF will get 58 per cent of the product.
This came after the European Commission in February adopted the European Chips Act to provide a total of up to €45 billion (S$63.4 billion) to support chip-related investments. France has reportedly agreed to invest "substantially" in the Crolles plant.


In June, GF, which manufactures semiconductors designed by the likes of Advanced Micro Devices (AMD) and Qualcomm, announced it would invest approximately $4 billion to expand its Singapore campus as part of the company's overall plan to grow its global manufacturing footprint and capacity.
From 700,000 wafers a year of 300mm capacity, GF will add 450,000 in phase-one expansion. Singapore will see two more expansions over the next decade involving some $8 billion investment.

Moore's law​

The demand for wafers is so vast that old shibboleths are being recast. The chip industry used to be centred on Moore's Law, which held that the number of transistors in an integrated circuit doubles every two years.
Today, says Dr Caulfield, we are in a "more than Moore's" environment. Of the several elements of Moore's Law, the matter of lower cost per transistor ended around where the chips reached 14-nanometre sizes. Now, as technology moves towards the low single-digit nanometre, the transistor cost rises - so there is little to no cost advantage in going down that road.
Chips with lower nanometres are considered more advanced.
As for speed, you aren't really getting faster performance with each generation of the advanced chips.
What's left then is less power used per transistor, critical for applications that use millions of transistors.
"Moore's Law today is more of an economic model than a technology model," he says.

This is why GF chooses, as a matter of practical good sense, to not chase the 2-nanometre chips, and is happy in the 12-nanometre space, or even older ones.
"We are playing in a Total Addressable Market that will grow to US$150 billion. Analysts are projecting GF revenue this year at US$8 billion. We have plenty of market head room to play where we can create value for our customers."
GF is substantially owned by Mubadala Investment Co, a sovereign wealth fund owned by the United Arab Emirates, which has assets under management of US$284 billion worldwide. GF was created after the technology, development and manufacturing capabilities of chipmaker AMD were hived off in 2009.
The new owners quickly set about building global scale, initially by buying Singapore's Chartered Semiconductor Manufacturing, then more assets from IBM, Dr Caulfield's former company.
By 2018, it had global scale and handed the CEO position to Dr Caulfield. Last October, he led it to a successful share sale, pricing the shares at US$47 and gathering US$2.6 billion in the process.
The stock rose 40 per cent in its first month and reached US$79 in March, but has since given up some of the gains as investors fret about a looming recession that might cause a surplus situation in chips. It was at US$51.48 at Friday's close.
"Mubadala has been incredibly supportive, insightful and has helped us turn the business around," says Dr Caulfield, of GF's principal owner. "Maybe, they were a little bit ahead of their time - never imagined we would take 12 years to get to an IPO but nonetheless they had vision and they believed in us."

Potato chips to microchips​

Last year, the New York-born Dr Caulfield, whose father was a New York City fireman, moved GF's headquarters from Santa Clara, California, to Malta, New York - an area that Senate Majority Leader Chuck Schumer - who is from the state - once joked was "more famous for potato chips than computer chips".
Dr Caulfield says business considerations, not sentiment, drove the move. Malta, upstate New York, already had a nanotech R&D facility around the University of Albany that had attracted firms like AMD, IBM and Samsung.
That had created an ecosystem of suppliers. The state sought to develop the area into a manufacturing centre with a partnership model that would see it invest US$1 billion and GF coming in with US$3.2 billion. However, GF ended up investing US$14 billion to build Fab 8, its most advanced semiconductor manufacturing facility, and the economic spin-offs for the area have been tremendous.
Aside from creating 3,000 jobs, each dollar in salary drove the local economy higher because of the velocity of money.
"Any time you invest in manufacturing, and the government participates, everyone concerned gets a great economic outcome," he says. "I moved the HQ to Malta because I need to be where the pulse of the company is, and that's a manufacturing facility."

Dr Thomas Caulfield says that it is not a matter of whether we will add to our US footprint, but when, and how fast, for GlobalFoundries. ST PHOTO: GIN TAY
Some analysts have unfavourably compared GF's gross margins of 15 per cent with those achieved by the big Taiwanese chip companies like TSMC.
Dr Caulfield attributes that to the depreciation overhang from the company's hyper-investment days - which inflicts an accounting cost on the firm.
There was also a fixed cost absorption - there were sites that hadn't been fully utilised. That's changing. In Dresden, Germany, GF shipped 320,000 wafers from its Fab 1 facility in 2020. It expects this year's fourth-quarter run rate from the same facility to be 800,000 wafers.
"The confluence of depreciation falling off, filling out our fixed footprint so we get economies of scale, and then remixing our business to be more differentiated, it's going to get us to competitive margins just like our competitors."
Gross margins should touch 40 per cent by 2024-2025, he says.
I ask him about the typical CEO's perennial worry about talent.
Firms like Intel, sought after in the 1980s by engineers such as the legendary Pat Gelsinger, now its CEO, vie for top talent with companies like Google and Amazon, partly because the latter are seen as "cool".
One of the bright spots of the chip crisis is the growing awareness of how vital the sector is, he says.
"There is a real challenge for creating new talent, and attracting talent. But even for liberal arts students, tech is (now) entering the curriculum. Semiconductors are starting to become cool again!"

Fast facts​

The CEO​

Dr Thomas Caulfield is the president and chief executive officer of GLobalFoundries (GF). He is 63 years old.
He joined the company in 2014 as senior vice-president.
Prior to joining GF, Dr Caulfield served as president and chief operations officer (COO) at lighting technology company Soraa from May 2012 to May 2014, and as president and COO of Ausra - which offers concentrated solar power solutions for electrical power generation and industrial steam production - from 2009 to 2010.
Earlier, he was executive vice-president of sales and marketing at Novellus Systems, and spent 17 years at IBM in a variety of senior leadership roles.
Dr Caulfield has a Bachelor of Science in Physics from St Lawrence University and a bachelor's, master's and PhD in materials science and engineering from Columbia University.
A native New Yorker, Dr Caulfield and his wife have a dayfger, 28, and son, 25.

The company​

GlobalFoundries is one of the world's leading semiconductor manufacturers. Its top products include chips that connect cell phones to telecoms towers and those used in cars and fridges.
Headquartered in Malta, New York, it is substantially owned by Mubadala, the investment fund of the United Arab Emirates.
GF has some 15,000 employees spread out over 14 locations in three continents. It counts more than 200 global customers and 100 partner companies.
GF reported a revenue of US$6.6 billion (S$9.1 billion) in 2021, up 36 per cent year on year, and gross margin of 15 per cent.
It has a market capitalisation of US$28 billion.

 

[laksaboy]

Even if those companies were retained and they made plenty of money, do you honestly think a dime will trickle down to you, daft Sinkie peasants?

You are just cattle to the technocrats, you are not stakeholders of anything. But the losses, you will pay for those.

Wake up to this fact instead of persisting in your delusions.