AMD Spinoff Globalfoundries to Buy Chartered for $1.8B
Globalfoundries, which AMD spun off in March in a joint agreement with ATIC, is buying Chartered Semiconductor Manufacturing, the third-largest semiconductor manufacturer in the world. The $1.8 billion deal will create an entity that will compete with such rivals as Taiwan Semiconductor Manufacturing and United Microelectronics. The deal also will mean that Globalfoundries will expand its customer base beyond Advanced Micro Devices and STMicroelectronics to include Broadcom and Qualcomm.Globalfoundries is merging with Chartered Semiconductor Manufacturing in a move that will create a major rival to the currently dominant Taiwan-based manufacturers. ATIC (Advanced Technology Investment Co.), which owns Globalfoundries, announced the $1.8 billion cash deal Sept. 8. ATIC officials said they intended to merge Chartered with Globalfoundries, a chip manufacturing business founded in March with Advanced Micro Devices. AMD spun off its manufacturing business to create Globalfoundries in a joint venture with Abu Dhabi, which owns ATIC.
Globalfoundries currently has a manufacturing plant in Dresden, Germany, and is building a new $4.2 billion facility in upstate New York.