According to Anandtech the company will focus on specialized process technologies for clients in emerging high growth markets. These technologies will initially be based on the company's 14LPP/12LP platform and will include RF, embedded memory, and low power features. Because of the strategy shift, GF will cut five percent  of its staff as well as renegotiate its WSA and IP-related deals with AMD and IBM.

COT Gary Patton said GlobalFoundries was on track to tape out its clients' first chips made using its 7 nm process technology in the fourth quarter of this year, but "a few weeks ago" the company decided to take a drastic strategical turn.

He stressed that the decision was made not based on technical issues that the company faced, but on a careful consideration of business opportunities the company had with its 7LP platform as well as financial concerns.

On the heels of this announcement, AMD said that it will move all of its 7nm production on both CPUs and GPUs to TSMC.