Advanced Technology Investment Company, one of the principal financiers which made the birth of Globalfoundries possible, is looking to to acquire AMD’s share in the company to consolidate its decision making.
“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,” reads an official statement made to the Reuters news agency.
As both AMD and Globalfoundries have long maintained the position that the former would gradually reduce its stake in the latter over time, ATIC’s announcement is not as aggressive as it appears. Further, the move plays to the catalyzing event that spawned Globalfoundries, better known as AMD’s decision to become a fabless company, or a chip designer with no manufacturing capabilities of its own. AMD has maintained that shedding the capital costs of manufacturing would free resources better spent on chip design, and generally improve the company’s financial standing.
Under terms of the original spinoff, ATIC owned a 55.6% stake in Globalfoundries while AMD owned a 44.4% stake. AMD’s share of the company has since declined due to the recent conclusion of ATIC’s $3.9 billion acquisition of Chartered Semiconductor. With Chartered Semi’s operations integrated with that of Glofo’s, ATIC is looking to assume the five board seats held by AMD to concentrate strategic and operational decisions.
While the terms of the potential deal have not yet been announced, it is widely believed to be just a matter of time.
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