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  • FURTHER EVIDENT TO REMAIN

  • FURTHER EVIDENT TO REMAIN

  • FURTHER EVIDENT TO REMAIN NEGATIVE ON THE STOCK.

  • NEGATIVE ON THE STOCK.

  • NEGATIVE ON THE STOCK. STACEY, GOOD MORNING

  • STACEY, GOOD MORNING

  • STACEY, GOOD MORNING IS YOUR CALL ABOUT GLOBAL

  • IS YOUR CALL ABOUT GLOBAL

  • IS YOUR CALL ABOUT GLOBAL FOUNDRIES BEING THE WRONG ASSET,

  • FOUNDRIES BEING THE WRONG ASSET,

  • FOUNDRIES BEING THE WRONG ASSET, OR IS THIS BROADER, PAT

  • OR IS THIS BROADER, PAT

  • OR IS THIS BROADER, PAT GELSINGER'S STRATEGY TO PUSH

  • GELSINGER'S STRATEGY TO PUSH

  • GELSINGER'S STRATEGY TO PUSH DEEPER INTO MANUFACTURING?

  • DEEPER INTO MANUFACTURING?

  • DEEPER INTO MANUFACTURING? >> A LITTLE OF BOTH, I GUESS

  • >> A LITTLE OF BOTH, I GUESS

  • >> A LITTLE OF BOTH, I GUESS LOOK, I GET PAT'S PUSH INTO

  • LOOK, I GET PAT'S PUSH INTO

  • LOOK, I GET PAT'S PUSH INTO MANUFACTURING.

  • MANUFACTURING.

  • MANUFACTURING. IT'S SORT OF FUNNY, THE BULL

  • IT'S SORT OF FUNNY, THE BULL

  • IT'S SORT OF FUNNY, THE BULL CALL ON THE STOCK FOUR OR FIVE

  • CALL ON THE STOCK FOUR OR FIVE

  • CALL ON THE STOCK FOUR OR FIVE MONTH AGO WAS INTEL WAS GOING TO

  • MONTH AGO WAS INTEL WAS GOING TO

  • MONTH AGO WAS INTEL WAS GOING TO GO LIGHT AND GET OUT OF

  • GO LIGHT AND GET OUT OF

  • GO LIGHT AND GET OUT OF MANUFACTURING.

  • MANUFACTURING.

  • MANUFACTURING. PAT KIND OF PUT THE KIBOSH ON

  • PAT KIND OF PUT THE KIBOSH ON

  • PAT KIND OF PUT THE KIBOSH ON THAT

  • THAT

  • THAT THEY HAVE BEEN BUILDING UP OR

  • THEY HAVE BEEN BUILDING UP OR

  • THEY HAVE BEEN BUILDING UP OR ATTEMPTING TO BUILD UP THEIR OWN

  • ATTEMPTING TO BUILD UP THEIR OWN

  • ATTEMPTING TO BUILD UP THEIR OWN LEADING EDGE FOUNDRY BUSINESS.

  • LEADING EDGE FOUNDRY BUSINESS.

  • LEADING EDGE FOUNDRY BUSINESS. PART OF THE PROBLEM, THOUGH, IS

  • PART OF THE PROBLEM, THOUGH, IS

  • PART OF THE PROBLEM, THOUGH, IS INTEL HAS NOT BEEN A FOUNDRY

  • INTEL HAS NOT BEEN A FOUNDRY

  • INTEL HAS NOT BEEN A FOUNDRY THEY DON'T KNOW HOW TO BE A

  • THEY DON'T KNOW HOW TO BE A

  • THEY DON'T KNOW HOW TO BE A FOUNDRY NECESSARILY.

  • FOUNDRY NECESSARILY.

  • FOUNDRY NECESSARILY. IF YOU'RE THINKING ABOUT THE WAY

  • IF YOU'RE THINKING ABOUT THE WAY

  • IF YOU'RE THINKING ABOUT THE WAY THEY COULD ADD TO IT, IT WOULD

  • THEY COULD ADD TO IT, IT WOULD

  • THEY COULD ADD TO IT, IT WOULD BRING THEM A FOUNDRY CUSTOMER

  • BRING THEM A FOUNDRY CUSTOMER

  • BRING THEM A FOUNDRY CUSTOMER BASE

  • BASE

  • BASE IT'S NOT LEADING, IT'S LAGGING

  • IT'S NOT LEADING, IT'S LAGGING

  • IT'S NOT LEADING, IT'S LAGGING IT WOULD BRING THEM A CUSTOMER

  • IT WOULD BRING THEM A CUSTOMER

  • IT WOULD BRING THEM A CUSTOMER BASE AND POTENTIALLY GIVE THEM

  • BASE AND POTENTIALLY GIVE THEM

  • BASE AND POTENTIALLY GIVE THEM EXPERTISE IN HOW TO RUN A

  • EXPERTISE IN HOW TO RUN A

  • EXPERTISE IN HOW TO RUN A FOUNDRY, WHICH HISTORICALLY,

  • FOUNDRY, WHICH HISTORICALLY,

  • FOUNDRY, WHICH HISTORICALLY, THEY HAVE BEEN BAD IF THEY DON'T

  • THEY HAVE BEEN BAD IF THEY DON'T

  • THEY HAVE BEEN BAD IF THEY DON'T KNOW HOW TO DO IT.

  • KNOW HOW TO DO IT.

  • KNOW HOW TO DO IT. AT THE SAME TIME, YOU KNOW, IF

  • AT THE SAME TIME, YOU KNOW, IF

  • AT THE SAME TIME, YOU KNOW, IF YOU THINK ABOUT THE FOUNDRY,

  • YOU THINK ABOUT THE FOUNDRY,

  • YOU THINK ABOUT THE FOUNDRY, TSMC IS REALLY THE ONLY ONE, THE

  • TSMC IS REALLY THE ONLY ONE, THE

  • TSMC IS REALLY THE ONLY ONE, THE 800-POUND GORILLA.

  • 800-POUND GORILLA.

  • 800-POUND GORILLA. THEY MAKE A TON OF MONEY

  • THEY MAKE A TON OF MONEY

  • THEY MAKE A TON OF MONEY THE OTHER ONES ARE KIND OF

  • THE OTHER ONES ARE KIND OF

  • THE OTHER ONES ARE KIND OF MARGINAL AND OF THE OTHER

  • MARGINAL AND OF THE OTHER

  • MARGINAL AND OF THE OTHER PLAYERS, UMC, SMICK, GLOBAL

  • PLAYERS, UMC, SMICK, GLOBAL

  • PLAYERS, UMC, SMICK, GLOBAL FOUNDRIES IS PROBABLY THE WORST.

  • FOUNDRIES IS PROBABLY THE WORST.

  • FOUNDRIES IS PROBABLY THE WORST. THEY HAVE BEEN LOUSY

  • THEY HAVE BEEN LOUSY

  • THEY HAVE BEEN LOUSY YOU KNOW, THEY HAVE BEEN TRYING

  • YOU KNOW, THEY HAVE BEEN TRYING

  • YOU KNOW, THEY HAVE BEEN TRYING TO DRESS IT UP, TRYING TO DO AN

  • TO DRESS IT UP, TRYING TO DO AN

  • TO DRESS IT UP, TRYING TO DO AN IPO, BUT THE ECONOMICS ARE STILL

  • IPO, BUT THE ECONOMICS ARE STILL

  • IPO, BUT THE ECONOMICS ARE STILL LOUSY.

  • LOUSY.

  • LOUSY. THE MARGINS ARE DILUTIVE

  • THE MARGINS ARE DILUTIVE

  • THE MARGINS ARE DILUTIVE YOU LOOK AT WHAT THEY HAVE BEEN

  • YOU LOOK AT WHAT THEY HAVE BEEN

  • YOU LOOK AT WHAT THEY HAVE BEEN PAYING FOR IT.

  • PAYING FOR IT.

  • PAYING FOR IT. YOU SORT OF THINK ABOUT IT, IF

  • YOU SORT OF THINK ABOUT IT, IF

  • YOU SORT OF THINK ABOUT IT, IF THEY SPEND $30 BILLION FOR THAT

  • THEY SPEND $30 BILLION FOR THAT

  • THEY SPEND $30 BILLION FOR THAT AND $20 BILLION FOR ARIZONA,

  • AND $20 BILLION FOR ARIZONA,

  • AND $20 BILLION FOR ARIZONA, THAT'S $50 BILLION TOTAL

  • THAT'S $50 BILLION TOTAL

  • THAT'S $50 BILLION TOTAL THAT WOULD BE COMING OUT OF

  • THAT WOULD BE COMING OUT OF

  • THAT WOULD BE COMING OUT OF INTEL, THE ENTIRETY OF THE

  • INTEL, THE ENTIRETY OF THE

  • INTEL, THE ENTIRETY OF THE SUBSIDIES THAT THE U.S.

  • SUBSIDIES THAT THE U.S.

  • SUBSIDIES THAT THE U.S. GOVERNMENT IS TALKING ABOUT FOR

  • GOVERNMENT IS TALKING ABOUT FOR

  • GOVERNMENT IS TALKING ABOUT FOR THE ENTIRE INDUSTRY IS $52

  • THE ENTIRE INDUSTRY IS $52

  • THE ENTIRE INDUSTRY IS $52 BILLION.

  • BILLION.

  • BILLION. IT KIND OF GIVES YOU AN IDEA OF

  • IT KIND OF GIVES YOU AN IDEA OF

  • IT KIND OF GIVES YOU AN IDEA OF THE SCALE THAT PAT IS THINKING

  • THE SCALE THAT PAT IS THINKING

  • THE SCALE THAT PAT IS THINKING ABOUT IN TERMS OF INVESTING.

  • ABOUT IN TERMS OF INVESTING.

  • ABOUT IN TERMS OF INVESTING. >> SO STACEY, WHAT PRICE TAG FOR

  • >> SO STACEY, WHAT PRICE TAG FOR

  • >> SO STACEY, WHAT PRICE TAG FOR GLOBAL FOUNDRIES DO YOU THINK

  • GLOBAL FOUNDRIES DO YOU THINK

  • GLOBAL FOUNDRIES DO YOU THINK WOULD MAKE SENSE, IF NOT $30

  • WOULD MAKE SENSE, IF NOT $30

  • WOULD MAKE SENSE, IF NOT $30 BILLION?

  • BILLION?

  • BILLION? AND WHAT ARE THE OTHER ASSETS

  • AND WHAT ARE THE OTHER ASSETS

  • AND WHAT ARE THE OTHER ASSETS YOU THINK INTEL SHOULD BUY

  • YOU THINK INTEL SHOULD BUY

  • YOU THINK INTEL SHOULD BUY INSTEAD?

  • INSTEAD?

  • INSTEAD? >> I DON'T KNOW.

  • >> I DON'T KNOW.

  • >> I DON'T KNOW. LOOK, SO I'M NOT GOING TO SET

  • LOOK, SO I'M NOT GOING TO SET

  • LOOK, SO I'M NOT GOING TO SET PRICE TARGETS ON GLOFO

  • PRICE TARGETS ON GLOFO

  • PRICE TARGETS ON GLOFO IF THE $30 BILLION IS CORRECT,

  • IF THE $30 BILLION IS CORRECT,

  • IF THE $30 BILLION IS CORRECT, THAT'S FIVE OR SIX TIMES ON

  • THAT'S FIVE OR SIX TIMES ON

  • THAT'S FIVE OR SIX TIMES ON SALES.

  • SALES.

  • SALES. TSMC RIGHT NOW SELLS FOR ABOUT

  • TSMC RIGHT NOW SELLS FOR ABOUT

  • TSMC RIGHT NOW SELLS FOR ABOUT TEN TIMES SALES.

  • TEN TIMES SALES.

  • TEN TIMES SALES. SMICK IS IN CHINA, THEY'RE ABOUT

  • SMICK IS IN CHINA, THEY'RE ABOUT

  • SMICK IS IN CHINA, THEY'RE ABOUT SEVEN TIMES SALES.

  • SEVEN TIMES SALES.

  • SEVEN TIMES SALES. FOR SOME CONTEXT, UMC'S NET

  • FOR SOME CONTEXT, UMC'S NET

  • FOR SOME CONTEXT, UMC'S NET MARGIN IS ABOUT 15% AND IT'S

  • MARGIN IS ABOUT 15% AND IT'S

  • MARGIN IS ABOUT 15% AND IT'S PROBABLY PRETTY PEAKISH.

  • PROBABLY PRETTY PEAKISH.

  • PROBABLY PRETTY PEAKISH. GLOBAL FOUNDRY IS LOSING MONEY

  • GLOBAL FOUNDRY IS LOSING MONEY

  • GLOBAL FOUNDRY IS LOSING MONEY AND THEY WOULD BE SPENDING TWICE

  • AND THEY WOULD BE SPENDING TWICE

  • AND THEY WOULD BE SPENDING TWICE AS MUCH.

  • AS MUCH.

  • AS MUCH. AS FAR AS WHAT ELSE THEY SHOULD

  • AS FAR AS WHAT ELSE THEY SHOULD

  • AS FAR AS WHAT ELSE THEY SHOULD BUY, I DON'T KNOW.

  • BUY, I DON'T KNOW.

  • BUY, I DON'T KNOW. IF THE GOAL IS TO GET INTO

  • IF THE GOAL IS TO GET INTO

  • IF THE GOAL IS TO GET INTO FOUNDRY, IS THAT IS THE

  • FOUNDRY, IS THAT IS THE

  • FOUNDRY, IS THAT IS THE STRATEGY, THERE'S NOT A WHOLE

  • STRATEGY, THERE'S NOT A WHOLE

  • STRATEGY, THERE'S NOT A WHOLE LOT ELSE OUT THERE

  • LOT ELSE OUT THERE

  • LOT ELSE OUT THERE GLOFO MAKES SENSE, AND THEY'RE

  • GLOFO MAKES SENSE, AND THEY'RE

  • GLOFO MAKES SENSE, AND THEY'RE HEADQUARTERED HERE IN THE U.S.,

  • HEADQUARTERED HERE IN THE U.S.,

  • HEADQUARTERED HERE IN THE U.S., VERSUS THE OTHER ONES WHICH ARE

  • VERSUS THE OTHER ONES WHICH ARE

  • VERSUS THE OTHER ONES WHICH ARE TAIWANESE AND CHINESE AND

  • TAIWANESE AND CHINESE AND

  • TAIWANESE AND CHINESE AND COREEN

  • COREEN

  • COREEN IF THAT'S THE GOAL TO TRY TO

  • IF THAT'S THE GOAL TO TRY TO

  • IF THAT'S THE GOAL TO TRY TO BUILD A BUSINESS AND GET SOME OF

  • BUILD A BUSINESS AND GET SOME OF

  • BUILD A BUSINESS AND GET SOME OF THE EXPERTISE, GLOFO IS KIND OF

  • THE EXPERTISE, GLOFO IS KIND OF

  • THE EXPERTISE, GLOFO IS KIND OF IT, BUT MAYBE THAT'S WHY THEY

  • IT, BUT MAYBE THAT'S WHY THEY

  • IT, BUT MAYBE THAT'S WHY THEY HAVE TO PAY UP IF THEY'RE

  • HAVE TO PAY UP IF THEY'RE

  • HAVE TO PAY UP IF THEY'RE SERIOUS ABOUT BUYING IT.

  • SERIOUS ABOUT BUYING IT.

  • SERIOUS ABOUT BUYING IT. >> I'M LOOKING AT THIS AND

  • >> I'M LOOKING AT THIS AND

  • >> I'M LOOKING AT THIS AND WONDERING WHAT IS PAT GELSINGER

  • WONDERING WHAT IS PAT GELSINGER

  • WONDERING WHAT IS PAT GELSINGER SITTING IN HIS OFFICE MOST

  • SITTING IN HIS OFFICE MOST

  • SITTING IN HIS OFFICE MOST WORRIED ABOUT AND WHY IS HE

  • WORRIED ABOUT AND WHY IS HE

  • WORRIED ABOUT AND WHY IS HE LOOKING AT EYEING THIS COMPANY

  • LOOKING AT EYEING THIS COMPANY

  • LOOKING AT EYEING THIS COMPANY IF YOU'RE HIM, SITTING IN THE

  • IF YOU'RE HIM, SITTING IN THE

  • IF YOU'RE HIM, SITTING IN THE OFFICE, WHY?

  • OFFICE, WHY?

  • OFFICE, WHY? >> I DON'T THINK IT'S -- GLOFO

  • >> I DON'T THINK IT'S -- GLOFO

  • >> I DON'T THINK IT'S -- GLOFO IS A PIECE OF A BROADER

  • IS A PIECE OF A BROADER

  • IS A PIECE OF A BROADER STRATEGY

  • STRATEGY

  • STRATEGY THE QUESTION IS WHY IS HE

  • THE QUESTION IS WHY IS HE

  • THE QUESTION IS WHY IS HE LOOKING TO GET WHOLE HEARTED

  • LOOKING TO GET WHOLE HEARTED

  • LOOKING TO GET WHOLE HEARTED INTO THE FOUNDRY INDUSTRY.

  • INTO THE FOUNDRY INDUSTRY.

  • INTO THE FOUNDRY INDUSTRY. THERE D COULD BE A FEW REASONS

  • THERE D COULD BE A FEW REASONS

  • THERE D COULD BE A FEW REASONS THEIR OWN CORE BUSINESS IS UNDER

  • THEIR OWN CORE BUSINESS IS UNDER

  • THEIR OWN CORE BUSINESS IS UNDER ATTACK

  • ATTACK

  • ATTACK IF THEY THINK THERE ARE ASSETS

  • IF THEY THINK THERE ARE ASSETS

  • IF THEY THINK THERE ARE ASSETS THEY COULD LEVERAGE AGAINST A

  • THEY COULD LEVERAGE AGAINST A

  • THEY COULD LEVERAGE AGAINST A PLAYER, I GUESS THAT'S A WAY TO

  • PLAYER, I GUESS THAT'S A WAY TO

  • PLAYER, I GUESS THAT'S A WAY TO GO

  • GO

  • GO OBVIOUSLY, THERE'S THIS HUGE

  • OBVIOUSLY, THERE'S THIS HUGE

  • OBVIOUSLY, THERE'S THIS HUGE CONCERN ABOUT THE U.S. IN

  • CONCERN ABOUT THE U.S. IN

  • CONCERN ABOUT THE U.S. IN GENERAL BEING TOO DEPENDENT ON

  • GENERAL BEING TOO DEPENDENT ON

  • GENERAL BEING TOO DEPENDENT ON TAIWAN FOR