GlobalFoundries co-owner to buy Chartered Semiconductor

After buying a majority stake in AMD fab spinoff GlobalFoundries for the tidy sum of $825 million, the Abu Dhabi government is back for more. GlobalFoundries has announced that ATIC, one of Abu Dhabi's investment arms, has entered an agreement to purchase independent Singapore foundry Chartered Semiconductor.

ATIC and Chartered have shaken hands on the $3.9-billion deal, and they expect the transaction to go through "during the fourth quarter of 2009." The High Court of Singapore as well as Chartered shareholders still have to give their blessing, though. ATIC is purportedly buying Chartered shares at a 14.2% premium over their 30-trading-day average.

Once the deal goes through, ATIC will own Chartered lock, stock, and barrel. GlobalFoundries CEO Doug Grose will "serve as CEO of the combined operations," while current Chartered CEO Chia Song Hwee will become the COO. (Before joining GlobalFoundries, Doug Grose headed AMD's manufacturing operations.) According to the press release, Chartered and GlobalFoundries "will be able to draw on each other's strengths to enable the next generation of semiconductor innovation, utilizing the value of both companies and the intellectual capital of thousands of skilled employees."

Chartered made headlines a few years when AMD selected it to outsource part of its 64-bit microprocessor manufacturing. The Singapore foundry later received validation to produce 65-nm AMD processors, and Microsoft also picked it to manufacture 65-nm Xenon CPUs for the Xbox 360.

Tip: You can use the A/Z keys to walk threads.
View options

This discussion is now closed.