Chartered voters approve takeover by GlobalFoundries owner


Earlier today, Chartered shareholders met to vote in favor of takeover by Advanced Technology Investment Company LLC [ATIC], owner of GlobalFoundries. The proposal was expectedly approved more than two-thirds margin – 82.5% of shareholders voted in favor of the takeover.

According to Ibrahim Ajami, Chief Executive Officer of ATIC LLC, "This is another positive step toward the combination of two great companies, Chartered and Globalfoundries, by bringing together the talent, technology and experience of both companies and supporting it with our long-term philosophy and patient capital, we offer something unique and competitive to customers and partners in this industry."

This gives you an answer what will happen with future quarterly earnings reports by "AMD Consolidated". With AMD now reporting separate financial results for AMD Product Group and GlobalFoundries under "AMD Consolidated," it is only a question of time when AMD finacial result will include Chartered Semiconductor.

The future of Chartered Semiconductor brand is already sealed – GlobalFoundries should gradually take over and we can expect that the site in Singapore becomes Fab 3, which would bring the number of GlobalFoundries manufacturing complexes to three:

  • Dresden, Germany: Fab 1 Module 1 and Module 2, expandable with Module 3
  • Saratoga, United States: Fab 2 Module 1, expandable with Module 2 and 3
  • Singapore, Singapore: Fab 3 Module 1 to Module 6 [former 2, 3, 3E, 5/SMP, 6CSP, 7]

Our sources told us that the shopping spree is nowhere near being over, targeting several expected, but unexpected companies as well. Currently, ATIC is taking their investments one at the time, evaluating each and every potential target for acquisition. As we reported earleir, Chartered was an excellent opportunity, brought forward by situation at majority owner, Temasek Ltd. At the rate of this investment, we expect that the following chain of events take place:

2010 – GlobalFoundries Inc. completely merges with Chartered Semiconductor Manufacturing Ltd.
2010 – Chartered facility is renamed into Fab 3 with associated modules [Module 1-7]
2010 – AMD announces the foundation of AMD Design Center in UAE, financed by ATIC
2010/2011 – ATIC announces strategic acquisition of two more companies
2011 – 65nm equipment is transitioned from Singapore to Abu Dhabi for learning phase
2012 – Fab 2 Module 1 in Saratoga officially opens
2015 – ATIC announces the building of Module 2 in Fab 2, Saratoga NY
By 2015 – ATIC announces the building of Fab 4 in Abu Dhabi

This is our take on the ATIC-GlobalFoundries-Chartered-AMD time line, not the official timeline. But the timeline was based on our conversations with various sources close to AMD, GlobalFoundries and ATIC. All in all, we stand by our comment made couple of weeks ago – GlobalFoundries is becoming an 800-pound gorilla in the semiconductor manufacturing industry.