Abu Dhabi takes sole ownership of Globalfoundries
Abu Dhabi's ATIC buys out AMD's miniority stake
Abu Dhabi's Advanced Technology Investment (ATIC), a high-tech investment fund owned by Mubadala, has taken over full ownership of Silicon Valley computer chip maker Globalfoundries, a spokesperson has confirmed.
ATIC has increased its stake in Globalfoundries from 91.2 percent to 100 percent, after it bought AMD's minority stake. AMD previously wholly-owned Globalfoundries before selling the majority of it to ATIC.
"The plan is to dilute AMD's stake in Globalfoundries and, in the end, Abu Dhabi will own 100 percent of Globalfoundries," a spokesperson told Arabian Business, but declined to reveal the price of the investment.
AMD, the world's second supplier producer of computer chips, posted a US$117m loss in 4Q11 due to a US$209m write-down of its investment in Globalfoundries. This was partly down to delays in a new Globalfoundries factory in Abu Dhabi coming online.
AMD did not only own a stake in Globalfoundries, but is also a major customer of the semiconductor manufacturer.
At the time of the write-down, AMD CEO Rory Read said Globalfoundries' "business plans [had] changed", impacting AMD's own performance.
ATIC, set up in 2008, is fully-owned by the Abu Dhabi government's investment and development company Mubadala Development Company.