Advanced Technology Investment Company plans to acquire share of Advanced Micro Devices in Globalfoundries, a contract semiconductor manufacturing joint venture between the two companies. The move will potentially allow ATIC to oust AMD members from Globalfoundries’ board of directors and concentrate strategic and operational decision making at its hands.
"This action is simply consistent with the long-announced plan for AMD to gradually become fab-less, which was one of the key strategies behind the creation of Globalfoundries," an official statement from ATIC that is quoted by Reuters news-agency reads.
Executives at both AMD and Globalfoundries have been claiming that the former would gradually reduce its stake in the latter, so the information does not come at a surprise.
Originally, ATIC owned 65.8% stake in Globalfoundries and invested roughly $2.1 billion, whereas AMD owned 34.2% stake worth around $700 million. Recently ATIC acquired Chartered Semiconductor for $3.9 billion and merged its operations with Globalfoundries. As a result, AMD’s share is already much lower than 34.2%, but the company continues to hold 5 seats in the board of directors, helping to make strategic decisions. Acquisition of AMD’s stake will allow Globalfoundries to centralize its decision making.
Terms of the potential deal have not been disclosed so far. It is known that proceedings from the potential transaction will help AMD financially and will further strengthen the company’s chip design efforts.