GlobalFoundries did not formally announce that it had “killed” 7nm. On August 27, 2018, it said it was putting its 7nm FinFET program on hold indefinitely, redirecting development toward 14/12nm FinFET and differentiated technologies, and separating its ASIC business into a wholly owned subsidiary. That subsidiary was introduced as Avera Semiconductor in October 2018.
What GlobalFoundries announced in 2018
The decision reversed a visible part of GF’s earlier roadmap. In June 2017, the company had announced its 7nm Leading-Performance (7LP) FinFET technology, claimed a 40% generational performance boost, and forecast initial customer products in the first half of 2018 followed by a volume-production ramp in the second half. Those dates were forecasts, not evidence that production began. GF also announced a 7nm ASIC offering called FX-7 and forecast volume production in 2019; the cited announcement does not establish whether that forecast was met.
On August 27, 2018, GF said it would pause 7nm development indefinitely and shift development resources toward its 14/12nm FinFET platform and other differentiated offerings. Its announcement described the strategy as a response to customer demand and to the expectation that customers would seek more value from each process generation. CEO Tom Caulfield said, “Essentially, these nodes are transitioning to design platforms serving multiple waves of applications, giving each node greater longevity.”
GF highlighted RF, embedded memory and low-power features, along with investment in FDX, RF SOI, high-performance SiGe and analog/mixed-signal technologies. In other words, the move was not simply an abandonment of advanced manufacturing: it was a change in which process and product areas received development attention.
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Why the ASIC business was separated
GF also announced that its ASIC business would become a wholly owned subsidiary independent from the foundry business. The company said the separation would build on its ASIC design and IP expertise and let the business serve a wider customer base, including customers using alternative foundries for 7nm and beyond.
In October 2018, GF introduced the subsidiary as Avera Semiconductor LLC. At launch, GF described Avera as offering custom ASIC solutions tied to GF processes at 14/12nm and older nodes, as well as access to alternative foundry processes at 7nm and beyond. That launch description clarifies the intended division of work: GF focused on its foundry process portfolio, while Avera was positioned to provide custom ASIC design services across GF and other foundry options.
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| Strategic route | Process and foundry access | Business scope | Stated focus |
|---|---|---|---|
| GlobalFoundries foundry | 14/12nm and differentiated or mature technologies | Foundry processes and manufacturing | Development resources aimed at differentiated offerings and customer demand |
| Avera at launch in October 2018 | GF 14/12nm and older technologies, plus access to alternative foundries at 7nm and beyond | Custom ASIC design and related services | Use GF’s ASIC design and IP expertise to serve a broader customer base |
The announcement establishes what GF intended for Avera at launch; it does not establish the company’s present-day ownership or operating status.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Employment impact and Avera’s launch scale
Eurofound’s 2018 restructuring factsheet reported 900 planned job losses, about 5% of GF’s workforce, associated with the strategy shift. It also reported redeployment as part of the change, consistent with GF’s statement that some technologists would move to other work.
In its October 2018 launch announcement, GF reported that Avera had more than 850 employees, a 25-year history with more than 2,000 complex designs, annual revenues in excess of $500 million, and over $3 billion in 14nm designs in execution. These are company-reported figures from 2018, not current metrics or independently verified estimates.
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Sources
- GlobalFoundries, August 27, 2018: 7nm pause, portfolio shift, ASIC separation and CEO remarks
- GlobalFoundries, October 31, 2018: Avera launch, stated services and launch figures
- GlobalFoundries, June 13, 2017: 7LP announcement and forecasts
- GlobalFoundries, June 13, 2017: FX-7 announcement and forecast
- Eurofound, 2018: restructuring factsheet
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