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