Globalfoundries to follow TSMC, develop 20nm tech

Globalfoundries revealed to X-bit labs that the fab company behind AMD’s production is working to develop 20nm technology in addition to 22nm tech.

“We are investing in both the 22nm and 20nm nodes. While half-nodes are certainly becoming an increasing trend there is still high-volume segments like the microprocessor business that require full node transitions,” said Jon Carvill, the Director of Corporate Communications at Globalfoundries.

The move to invest in both full- and half-node processes comes in response to the varying demands of the microprocessor and GPU markets, which Glofo is equipped to serve simultaneously. Whereas the CPU industry has been dominated with full-node process transitions like 65nm, 45nm and 32nm, the GPU industry has adopted so-called “half-node” processes like 55nm and 40nm.

A half-node process is merely a scaled down version of a full-node process. Because fabricating on a half-node does not require a complete circuit redesign, compatible chips are often produced on the smaller half-node for reasons of cost, power and heat efficiency.

X-bit labs notes, however, that Globalfoundries’ recent decision to skip 32nm and head straight to 28nm may compromise the value proposition of the next full-node process: 16nm. Analysts suggest that there is a strong business case for moving from 40nm to 28nm, a smaller case for 28nm to 20nm and only marginal benefit to moving from 20nm to 16nm. Globalfoundries isn’t ready to make that conclusion, however.

“It is too early to tell on the exact performance/power efficiency benefits transition from 28nm to 22nm/20nm node will yield,” Carvill says. “As the geometries get smaller so will the levels of the shrinks. That doesn’t necessarily mean there won’t be benefits as or more compelling than what we’ve seen in previous generations.”

Keeping track of process nodes

The manufacture of processors and GPUs is dominated by three major players: Intel, TSMC and Globalfoundries. Intel runs the largest wholly-owned semiconductor foundry network in the world and, as you might imagine, the company is largely interested in using them to produce their own CPUs.

TSMC is the world’s largest independent foundry, and the company’s primary source of revenue is the production of GPUs. Both AMD and NVIDIA rely on TSMC’s manufacturing expertise to make the chips, most recently with the Radeon HD 5800 and the GeForce GTX 400 series of adapters.

Finally, Globalfoundries is a foundry network created by AMD when it voluntarily spun off its manufacturing capabilities to reduce capital burdens. Though AMD remains a principal investor, joint owner ATIC has expressed the desire to assume AMD’s stake for sole ownership, which would make Globalfoundries truly independent. Technicalities aside, Glofo continues to make manufacturing contract bids and acquisitions like an independent firm, most recently with the purchase of Chartered Semiconductor.

Keeping track of what these major players are doing can be tough work, so we’ve compiled the following table to illustrate each process node, its status as a full or half step, what it’s used for and where each company is at with the node.

In short, what we’ve said before bears out: the next price war will be at the fab. With Glofo accelerating its production expertise, they will put pressure on both Intel and TSMC, a position both foundries have never been particularly susceptible to. At some point, this will equate to cost savings for the lot of us.