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Exam Number : C1000-022
Exam Name : IBM Storage Technical V2
Vendor Name : IBM
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Why IBM Is Suing GlobalFoundries Over Chip Roadmap disasters | C1000-022 Dumps and exam Questions

The tight linkage between chip designs and chip manufacturing methods has brought about its share of havoc within the IT sector, and it's getting worse as Moore’s law has slowed and Dennard scaling died a decade in the past. Wringing extra performance out of contraptions while attempting to hold a lid on energy draw is inflicting numerous trouble as chip makers try to strengthen the state of the paintings. When there are disasters to meet chip manner targets set by way of the foundries of the realm, chips force off the roadmap web page and smash on the floor.

Nothing demonstrates this greater than Intel’s personal concerns with bringing a 10 nanometer chip etching procedure to market in the past 5 years, which has allowed room for AMD to re-enter the server CPU market with gusto and which has saved Intel from being as aggressive with GPU and FPGA accelerators because it could have otherwise been. however Intel has been far from the handiest disappointment, curiously.

Publicly, IBM looked as if it would shrug off disappointments with former foundry companion GlobalFoundries, which become purported to take over the beginning of 14 nanometer technologies for IBM vigour and z processors and convey 10 nanometer and smaller chip etching options as part of a ten-year agreement inked in October 2014 and closed in July 2015. below that settlement, IBM essentially gave GlobalFoundries its Microelectronics division, which made all kinds of processors, including these for Sony, Microsoft, and Nintendo online game consoles in addition to IBM’s server CPUs and a slew of chippery for all kinds of purchasers, including the U.S. govt. because it seems, IBM did shrug off the delays in getting 14 nanometer chips out of the fabs – their statement is that they have been a few yr late with Power8 – however IBM has apparently been seething for years concerning the spiking of the 10 nanometer manner, which the public didn't know about unless they connected some dots, after which the spiking of the 7 nanometer method, which become carried out abruptly in August 2018. This left massive Blue without a server roadmap, essentially. And now, IBM wishes at least $2.5 billion in damages.

The lawsuit, filed in the new york Supreme court on June 8, has not yet been made public on that courtroom’s programs, but they got their palms on a heavily redacted version and you can get the PDF file right here. The GlobalFoundries response, which got here out earlier than any one was aware of the IBM lawsuit and a day earlier than IBM filed the lawsuit, has been made public and may be found at this link.

This condition is messy for IBM and GlobalFoundries: technically, economically, and emotionally. but if the things that IBM is alleging in its lawsuit are proper, then this could be a textbook case of how a foundry partnership can go dangerous.

essentially the most obtrusive question is: Why is IBM doing this now? It has been nearly six years considering the fact that GlobalFoundries pulled the plug in its 10 nanometer efforts, and well-nigh three years when you consider that it pulled the plug on 7 nanometer approaches and even smaller transistor shrinks. however as IBM is winding down its Power9 and gadget z15 servers and is not any longer as based on GlobalFoundries as it has been in prior years – the business picked Samsung Electronics as its foundry associate within the wake of the GlobalFoundries spike and is etching its future Power10 and z16 CPUs the usage of the Korean chip maker’s 7 nanometer strategies – massive Blue has decided it needs delight.

The timing is somewhat suspect, above all with rumors swirling round about Mubadala funding company, the investment arm of the oil producing nation of Abu Dhabi and the proprietor of GlobalFoundries, Studying to file an preliminary public offering this year on a inventory market within the u.s.. That IPO is projected to be worth $20 billion to $30 billion, thanks in massive half to the semiconductor scarcity that IBM cannot benefit from since it has now not been a foundry on account that July 2015.

twist of fate is a true element on the earth, and it is probably a coincidence that a worldwide scarcity in semiconductor manufacturing – on superior nodes or ancient ones – is what's helping to make GlobalFoundries advantageous just as IBM likely has all of the wafers it should fulfill Power9 and z15 orders continuously. That’s why it is happening now. As for why it is going on at all, that’s a a good deal extra complicated circumstance, and it's important to bear in mind that claims and counter claims in court cases are not records except a jury and choose determines them to be so – and perhaps now not even then.

IBM gets Out Of The Foundry business

lower back in 2013 and 2014, IBM turned into in a single of the divesting moods it periodically gets into. It offered off its system x X86 server company to Lenovo and “offered” the Microelectronics division to GlobalFoundries, which itself was spun out of AMD in October 2008 and in the past augmented with the chip making business Chartered Semiconductor. All three of these chip companies collectively, plus a research and construction contract with IBM and its other partners at the middle for Semiconductor research at the State university of long island’s Albany NanoTech advanced. this present day, both Samsung and now Intel are contributing to and benefiting from that research, possibly including IBM’s breakthrough 2 nanometer chip strategies introduced final month. the first 7 nanometer and then the first 5 nanometer CPUs on this planet were etched there, so here is useful analysis that helps foundries get chip completed.

As a part of the Microelectronics deal, GlobalFoundries obtained itself a portfolio of round 16,000 patents and patent functions, which is a crucial look after in opposition t litigious rivals, in addition to two often outdated foundries – one in East Fishkill, big apple and the other in Essex Junction, Vermont – and round 5,000 personnel who design chips and run foundries. large Blue saved a small group of individuals to design its energy and z processors and a few of the people at IBM analysis engaged on semiconductors. IBM agreed to pay GlobalFoundries $1.5 billion over three years to invest in 14 nanometer and 10 nanometer processes and took one more $3.2 billion in writeoffs. In 2013, Microelectronics had $1.4 billion in earnings, however had a pre-tax loss of $700 million, so you can bear in mind why massive Blue wanted out. each new technique reduce became going to be more and more painful and increasingly costly and IBM just did not have the kind of scale that GlobalFoundries had hoped to construct. IBM’s lawsuit contends that GlobalFoundries changed into now not capable of constructing “excessive efficiency” chips, which is ludicrous considering the fact that AMD become completely able to constructing market-main Opteron CPUs for servers and Radeon GPUs for pix and visualization long earlier than this deal become carried out.

what is reasonable to assert is that GlobalFoundries necessary to maintain the AMD enterprise and including IBM’s business to it could assist it snowball CPU, GPU, and different accelerator company to more desirable take on Intel, Taiwan Semiconductor Manufacturing Corp, and Samsung for client and server constituents and other ASIC manufacturing and packaging. IBM’s foundries had been no longer a good suggestion for the long run, but the funds and the people definitely had been. truly, Thomas Caulfield, the present chief executive officer at GlobalFoundries, ran the Fab8 foundry built with the aid of GlobalFoundries and ran the East Fishkill foundry at IBM from 1989 via 2005 before dabbling in task capital and startups for a while earlier than becoming a member of GlobalFoundries.

The crux of IBM’s lawsuit is that GlobalFoundries promised to deliver 10 nanometer methods after which modified it to 7 nanometer strategies – and did neither. To hedge its bets, GlobalFoundries took a twin course to 7 nanometers, one the usage of standard immersion lithography and yet another the usage of severe ultraviolet (EUV) lithography. The latter is a method that TSMC got appropriate first, Samsung is perfecting now, Intel is working on and has had some issues, and GlobalFoundries did not comply with through with on the 7 nanometer node. GlobalFoundries most likely killed its 7 nanometer efforts because it already knew that AMD was going to TSMC for as a minimum some of the chips inside the “Rome” Epyc 7002 and “Milan” Epyc 7003 server processor applications. They know that AMD determined to skip over the ten nanometer node, which can also have also played into the choice by way of GlobalFoundries to not invest in it notwithstanding its contract with IBM explicitly pointed out it will do just that. with out the surprisingly excessive volumes of AMD server chips, IBM’s server chips do not need paid the bills on the enormous investment. They don’t be aware of what the numbers are, however the same math held proper at Microelectronics when IBM decided to cast off it.

What they don’t recognize is that if AMD determined to jump over 10 nanometer techniques to 7 nanometer procedures to get an aspect on Intel or if it basically had no option to accomplish that as a result of GlobalFoundries was pulling the plug to center of attention on its twin-prong 7 nanometer effort. They feel AMD changed into hit with the aid of the identical 10 nanometer shock that IBM turned into, however AMD certainly not said anything about that and put the top-quality spin on it. a whole lot as IBM did with the difficulties that GlobalFoundries apparently had bringing 14 nanometer approaches and IBM certainly not mentioned tons at all about 10 nanometer issues. AMD, of course, used 14 nanometer techniques from GlobalFoundries for its first generation “Naples” Epyc 7001 chips and nonetheless uses 14 nanometer processes in the I/O and memory hub at the heart of the Rome and Milan server processor applications. The Rome and Milan cores are etched by TSMC in 7 nanometers, and Infinity fabric links hook hub and the cores together in a single package.

The extend with the 14 nanometer strategies and the stoppage of 10 nanometer approaches is obvious in the IBM vigour roadmaps. Take a look at this vigour processor roadmap from a couple of years ago:

announcing that Power9 shipped in 2017 is beneficiant, since it was most effective low volumes of CPUs for the “Summit” supercomputer at very wellRidge national Laboratory and the “Sierra” supercomputer at Lawrence Livermore country wide Laboratory. It took IBM all of 2018 to thoroughly ramp systems in response to the Power9 chip that became etched the use of GlobalFoundries 14 nanometer methods.

we can’t show this, but they think the normal plan from IBM turned into to decrease to 10 nanometers with Power10 and create a dual-chip module chiplet to push it as much as 48 cores. They also suppose IBM basically desired to get this out the door in 2020 and carry on the three-yr cadence it likes with its server structures. IBM says that the primary rumblings that the ten nanometer procedure turned into in problem came in September 2015, only two months after the Microelectronics deal was inked, and by using December 2015, GlobalFoundries talked about it would not do it. IBM alleges “upon advice and perception” that GlobalFoundries knew it was going to do this before the deal closed.

IBM says it certainly not launched GlobalFoundries from the 10 nanometer commitment, however labored “in decent faith” on the construction of a 7 nanometer chip. This, they presume, turned into the shift they now see from a Power10 in accordance with 24-core chiplets to a Power10 with a radically new core with sixteen physical cores per chip but 15 or 30 fat or skinny cores per chiplet and 30 or 60 cores per equipment – the one which Samsung is at the moment slated to fabricate later this yr for big Blue:

according to IBM’s swimsuit, GlobalFoundries spoke of in the fall of 2016 that it might have a 7 nanometer verify chip capable within the 2d quarter of 2017, pilot construction in the first quarter of 2018, and extent construction within the third quarter of 2018, and alleges extra that “GlobalFoundries time and again represented to IBM that the 7nm chip GlobalFoundries would enhance can be an sufficient replace for the 10nm chip it had promised.”

Given this, IBM cut the examine for the final $250 million traunch within the $1.5 billion in money it promised as a part of the Microelectronics division transfer, and says that through 2017, it had invested at the least $188 million in resources to help GlobalFoundries during this 7 nanometer effort. at the moment, GlobalFoundries was ramping the 14 nanometer applied sciences used with the Power9 and z13 chips – which big Blue says “was area to big delays and issues related to performance and first-class” – and Caulfield, who changed into made CEO in July 2018, allegedly informed IBM that it might go through with 7 nanometer building if IBM paid an further $1.5 billion. by August, IBM demanded that GlobalFoundries return the $1.5 billion, which the chip maker balked at, absolutely, and by using the end of the month GlobalFoundries publicly announced it become suspending its 7 nanometer efforts, together with both water immersion and EUV lithography ideas and would center of attention on 14 nanometer and older technologies.

while both businesses were bickering backward and forward about what their agreement supposed and no matter if or not it had been breached, GlobalFoundries offered off the East Fishkill fab to ON Semiconductor for $430 million in April 2019 and sold its customized ASIC company to Marvell in can also 2019 for $650 million with an extra $90 million potentially coming in, and then offered off every other property that IBM says tally as much as $1 billion and which actually ensured that GlobalFoundries could not make first rate on its 10 nanometer legal commitments and seven nanometer promises. this is a stretch. The 7 nanometer stuff became accomplished in the Fab8 factory in Malta, manhattan. they now have considered it with their own eyes. IBM can’t switch property as a part of a deal after which get mad when the “buyer” decides to promote.

IBM can certainly be upset, and are seeking for financial damages, if GlobalFoundries promised chip fabbing and didn’t deliver. The case is difficult to make with 14 nanometers, due to the fact chips did get out although later than expected as appears to be the case, but it is effortless to make with the ten nanometer and seven nanometer spikes. These basically led to IBM to rewrite its energy and device z processor roadmaps and actually led to delays in deliveries of superior know-how. They don't have any thought how much all of this alternate undermined IBM’s bids for the successor “Frontier” exascale device at very wellRidge or the “El Capitan” exascale equipment at Lawrence Livermore, but it surely couldn't have helped. (We suppose lots of different components had been at play there.)

nevertheless, proceedings are about recovering economic damage. It should be complicated for a jury to do the maths on what it may be, however adding the $1.5 billion that IBM gave GlobalFoundries as part of the Microelectronics switch after which the $1 billion or so that GlobalFoundries obtained from selling off belongings together isn't a satisfactory formulation to calculate the financial harm in this case.

We desired to get some form of commentary out of IBM, however given here's a lawsuit, what they obtained turned into this commentary from an IBM spokesperson: “IBM trusted GlobalFoundries after investing heavily in a long-term mutual relationship. GlobalFoundries responded by using taking IBM’s money, and benefitting from IBM’s competencies, skill and belongings. although GlobalFoundries repeatedly guaranteed IBM that it would meet its commitments, GlobalFoundries instead suddenly and with none justification walked faraway from IBM while IBM was reliant on GlobalFoundries. GlobalFoundries has demonstrably didn't act as a respectable associate and organisation.”

“that you may find improved, but which you can’t Pay greater*”

GlobalFoundries, in its response, is unequivocal concerning the circumstance. “This action arises out of what seems to be a inaccurate and sick-conceived effort by means of IBM’s legislation branch to are trying to extract an outlandish payment from GF that IBM is aware of it isn't entitled to,” its felony response begins. “IBM’s timing is not handiest tremendously suspect as it comes on the heels of recently stated information of a potential initial public providing (“IPO”) via GF that could price it at approximately $30 billion, but also extremely inconsiderate of present movements, particularly a global chip scarcity fueled by way of a deadly disease that has impacted important domestic industries, together with the automotive sector.”

GlobalFoundries says that it spent the $1.5 billion IBM gave it investing in the foundry company, and then spent “way over this amount” itself additional investing. while this is a provable and calculable determine, it turned into no longer given within the response. GlobalFoundries also alleges that IBM collectively agreed to forego the 10 nanometer node and purse the 7 nanometer node. but given “the technical complexity and massive fiscal can charge” of the 7 nanometer effort, GlobalFoundries could not carry 7 nanometers on the timeline set. (We believe at a cost that GlobalFoundries would or could endure as well.) due to the fact others had 7 nanometer concepts, GlobalFoundries “opted no longer to region itself in serious financial stress through the persisted pursuit of a failing method and for this reason ceased developing 7nm know-how,” and “IBM at once found a new, and less expensive, 7nm technology organisation in Samsung.” IBM, GlobalFoundries contends, really benefitted from GF’s determination to stop engaged on 7 nanometer expertise.

IBM could have gotten to 7 nanometers sooner this manner, however it sure might have used Power10 a 12 months or more in the past in line with 10 nanometer know-how. IBM doesn’t say that in its filing, but we're announcing that. And if there's any economic hurt, that’s it. system z customers don't seem to be itching for potential in the equal approach. however the HPC market, and in particular hybrid CPU-GPU machines the place the CPU has loads of I/O and reminiscence bandwidth, and perhaps a memory enviornment network as Power10 has, definitely could have already used those Power10 processors. maybe it may had been chosen within the DGX-2 gadget, basically. This must be a part of any calculation of financial damage, if any is to be made.

This lawsuit by IBM is not frivolous, possibly, but it definitely is opportunistic and disruptive to GlobalFoundries. but when it does proceed to trial, the damages aren't any place near the general public waft of GlobalFoundries stock, and the chip maker will take the hit and maybe even get on with developing extra superior processes as a foundry of its stature and heritage should still.

*word: noted quote from an IT manager in the Wall highway Journal within the Nineteen Nineties talking about an IBM that become struggling.


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