Also, great points made in your earlier post. Post #:63543109 In particular, I find this point you made much ‘food for thought’.
4. Welcome to the US semiconductor industry which can be like a daily soap with its takeovers, spin-offs, rumours, which all help to bring things into the financial press. GF is a spin-off of AMD and there were rumours Intel wants to buy GF foundries rather than build its own from scratch.
Firstly, to all HC readers, my understanding is that the ASX doesn’t decide whether an initial Release is price sensitive or not, the listed-company does. Therefore, unpicking why Archer didn't choose to tick that box before they released it may say more about what's really going on behind the scenes. I'd suggest that it could have been for any one of the following reasons:
1: worst kept secret. Maybe Archer has been working with GlobalFoundries (GF) for some time. Therefore, this publicly announces it to the broader market.
2: direct consequence of the Biden Administration’s CHIPS bill (2 years of work). Now that the US semi-conductor industry is on notice with subsidies, boosted funding for research and development, a GF and Archer's collaboration is required for GF to access the US licensed funds.
3: avoid alerting day and short-term traders.
Whatever the reasons were, IMO we’re going to find out how advanced Archer truely is before too long. As a tier-one semi-conductor, GF is as good as it gets, and they need to convince their shareholders that they have a viable future in order to maintain SP value in a high-inflationary environment. Nevertheless, what is most interesting, under this new CHIPS bill, is the requirements for any ‘future chips’ achieving comparable peak performance and chip-to-chip input/output performance, as well as systems including those circuits to be able to access these funds. This is were Archer's quantum chip fits in beautifully. They have a future technology that is potentially disruptive to anything else that is being currently manufactured. Therefore, they can be at the forefront of a fresh kind of semi-conductor industry (one they can control) which is exactly what the US is aiming to do.
If GF believe that Archer have what it takes then this is clearly big news for us. However, Archer somewhat playing it down may be to manage our own expectations.
Exciting events to unfold, maybe sooner than we think!
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