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Abu Dhabi buys another chipmaker

Chartered Semiconductor to merge with Globalfoundries
Monday, 7 September 2009, 09:50

NOT SATISFIED with owning Globalfoundries, AMD's former chip shops, the investment arm of the Abu Dhabi government will buy Singapore's state-controlled Chartered Semiconductor Manufacturing.

Advanced Technology Investment Company, LLC (ATIC), will pay more than 14 per cent above what the outfit is actually worth.

ATIC plans to combine the maker of chips used in Xbox 360 game consoles with Globalfoundries, the chipmaking venture spun off from AMD last year.

Analysts say that the deal makes a lot of sense for both Chartered Semiconductor and Globalfoundries, and creates a real threat to other players like TSMC and UMC.

Chartered Semiconductor was created in 1987 out of Singapore Technologies Engineering and first sold shares to the public in 1999. It is the world's third-biggest maker of customised chips and is backed by Temasek, Singapore's state investment firm. Temasek has been wanting to offload the loss-making outfit for some time.

Globalfoundries CEO Doug Grose will run the combined company. Chartered Semiconductor CEO Chia Song Hwee will be chief operating officer and will be in charge of integrating the operations.

From Globalfoundries perspective the deal will give it access to customers who would not have looked at it sideways before.

The deal also means it can start increasing production straight away. Overnight Globalfoundaries will have over 11 percent of the global custom-chip market, whereas previously it was hardly even ranked.

Globalfoundries has a facility in Dresden, Germany and a new, state-of-the-art facility under construction in New York State. µ

 

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Comments
@Intel lover

AMDs IGP Chipsets = upto 3 times faster than Intels in 3D, its been like this for ages, heck a Intel GMA950 is 2 times slower than even a Radeon X1250, and a Radeon HD 3300 is 3 times faster than intels fastest 4500HD

AMDs GPUs are on the same level as NVIDIAs and will be even twice as fast in a month or two (aka Radeon HD 5000 Series) and have DirectX 11

AMDs CPUs are good enough, who the heck wants to buy a i7 975 for $1000, when a Phenom II 955 isnt that far behind in performance for 10 times less the price

if you dont love AMD, you chould not have had an i7 at all now, everyone would be still on the pentium 4 level

AMD broke 1Ghz barrier on both CPUs and GPUs

AMD was first with a proper igp chipset aka 780G that chould decode blu-ray

AMD released AMD64 also known as Intel EMT65 aka Intel 64 aka x86-64, so you can now have 8GB memory and better combablity with 32-bit Intel realy fucked up with their itanium crap ;)

AMDs HyperTransport that is now 6 years old is still in use in their latest cpus, Intel just copied it with their quickpath in i7 that was released 5 YEARS after...

posted by : AMD Lover, 07 September 2009 Complain about this comment
Intel Kill AMD

Maybe someone can answer this: If amd goes bankrupt and nobody will compete with intel in the x86 market, wouldnt intel have to split into two companies according to US monopoly/antimonopoly/or whatever law?

Someone told me this some time ago and i really dont know how much truth is there in that statement

posted by : Ronaldinho, 07 September 2009 Complain about this comment
Intel lover read this:

you need to pull your head out of your arse and think of the implication... dumb retard, oh and your english is sh*t - get a life you fool.

And then you can go make love to intel!

bye.

posted by : Jon the evil., 07 September 2009 Complain about this comment
AMD is here to say...

Picking up ATi was a strategic move. The 4850/70 series has a massive die area advantage over the comparable nVidia chips. The same is expected with the 5850/70 series. That means even if nvidia can price their chips the same as ATi's, nvidia is still at a disadvantage due to the fact that they get far fewer dies per wafer. I'm not sure on AMD's CPU die sizes, but with how they can maintain price competitiveness I'd imagine they have a die area advantage there too. All this translates to better profit margins, even on value parts. As long as they're turning a profit, it doesn't matter that they don't have a majority stake in market share.

AMD/GF in command of 11% of global custom-chip production will prove interesting. This is just the beginning folks.

posted by : Red, 07 September 2009 Complain about this comment
Stupid

That's the stupidest thing I have hear in a long freaking time. Intel need AMD you A hole.

posted by : merlyn, 08 September 2009 Complain about this comment
God Save AMD! :P

Yeah Intel do need Amd. Intel is same like microsoft. they have no taste for their product, What they do is copying other people creative innovations and never come up with something new..thats totally sad.Intel and Microsoft can survive in this market because they good in marketing(monopoly the market). God save Amd :P

posted by : sidz, 08 September 2009 Complain about this comment
x86 license issues?

This would further dilute AMD's ownership in the combined company and I don't see how AMD would get around the potential x86 license issues as they would clearly be a minority owner and it would be hard to argue that this is still an AMD controlled company/subsidiary/[insert PR term to get around the license issues here]

Anyone know what this would do to the current x86 license? (The merger may have to wait until after the license is renegotiated in 2010?)

posted by : license issues?, 09 September 2009 Complain about this comment
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