Abu Dhabi to buy Asian chip foundry for $1.8bn

Advanced Technology Investment Company keen to expand investments by acquiring Singapore’s Chartered Semiconductor Manufacturing

Tags: Advanced Technology Investment CompanyChartered Semiconductor ManufacturingGLOBALFOUNDRIES IncorporationMergers and acquisitionsSingaporeUnited Arab Emirates
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Abu Dhabi to buy Asian chip foundry for $1.8bn Waleed Al Mokarrab (L), chairman of ATIC, and Douglas Grose (R), CEO of Globalfoundries, announced their acquisition interest in Chartered at a press conference in Singapore. (Getty Images)
By  Vineetha Menon Published  September 7, 2009

Advanced Technology Investment Company (ATIC), owned by the government of Abu Dhabi, will buy Singapore-based Chartered Semiconductor Manufacturing foundry for $1.8 billion.

The acquisition of Chartered, which makes chips for Microsoft’s Xbox 360 game console, combined with ATIC's Globalfoundries joint venture with Advanced Micro Devices, could create the second largest contract manufacturer of semiconductors in the world.

 “We believe that by having access to ATIC’s long-term capital and related assets, Chartered has an opportunity to bring its skills, capabilities and leadership to the next level,” said Waleed Al Mokarrab, chairman of ATIC, in a company statement. “By acquiring Chartered, ATIC is expanding its investments in the semiconductor industry which currently consist of a GLOBALFOUNDRIES leading facility in Dresden, Germany and a new, state-of-the-art facility under construction in upstate New York.”

Temasek Holdings, which owns nearly 62% of Chartered’s shares, has supported the deal, which is still subject to the approval of Chartered shareholders and a sanction from the High Court of Singapore.

“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. In addition, it enables Chartered to accelerate its goal of becoming a leading player in the semiconductor industry,” said Jim Norling, chairman of the board of directors at Chartered.

Doug Grose, chief executive officer of Globalfoundries, will be CEO of the combined operations, while Chia Song Hwee, CEO of Chartered, will take on the role of chief operating officer.

The ambitious deal is expected to close before the end of 2009.

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