ATIC takes final 8.8% of Global Foundries

Advance Technology Investment Company (ATIC) yesterday confirmed it had acquired Advanced Micro Devices' (AMD) remaining 8.8 per cent equity in Global Foundries, the semi-conductor company created when AMD spun off its manufacturing division in 2008. The deal gives ATIC, a wholly-owned subsidiary of Mubadala, full ownership of Global Foundries, the third largest independent makers of computer chips in the world. AMD agreed to pay Global Foundries $425 million (Dh1.6 billion) and expects to record a one-time charge of $703 million in the first quarter of 2012. The remainder will be a non-cash charge. A spokesman for Global Foundries said the arrangement is good for his company as it allows a broadening of its customer base. Global Foundries also said it was pleased the deal leaves Abu Dhabi-based ATIC as the manufacturer's sole owner. "Today marks the start of a new era for Global Foundries as it becomes a truly independent foundry," said chief executive Ajit Manocha. Rory Read, AMD's chief executive, said the agreement means the two companies "remain committed as long-term strategic business partners". The formation of Global Foundries was originally proposed in October of 2007 when ATIC announced it would invest an initial $2.1 billion into the company. AMD said then it had entered the joint venture as part of an effort to remain competitive with arch-rival Intel. From gulfnews