Advanced Technology Investment Company (ATIC) of Abu Dhabi has agreed to acquire Chartered Semiconductor Manufacturing of Singapore for around $1.8bn.
This marks a significant expansion for the newly formed foundry company, ATIC which is owned by the government of Abu Dhabi. In March it acquired AMD fabs and formed the Globalfoundries manufacturing joint venture.
Chartered is the world's number three chip foundry behind TSMC and UMC and the addition of Globalfoundries business, which includes former AMD fabs in Europe and the US, would see it leap to number two behind TSMC.
“By acquiring Chartered, ATIC is expanding its investments in the semiconductor industry which currently consist of a Globalfoundries facility in Dresden, Germany and a new facility under construction in upstate New York,” said Waleed Al Mokarrab, chairman of ATIC.
See: AMD foundry spin-out to see $6bn investment from Abu Dhabi
The deal comes at an important time for Chartered, which is faced with increasing pressure for investment in next generation semiconductor production technologies.
According Jim Norling, chairman of the board of directors at Chartered: “Given the importance of scale and the need for substantial, continued capital investment, and having carefully assessed all strategic options available to Chartered, we believe this transaction provides Chartered shareholders the opportunity to realize their investment.”
Pending appropriate board approvals, Doug Grose, CEO of Globalfoundries, would serve as CEO of the combined operations, with Chia Song Hwee, CEO of Chartered, serving as chief operating officer.
Completion of the transaction will be subject to customary conditions, such as regulatory and shareholder approvals.