ATIC, the investment arm of the Abu Dhabi government and principle financier of GLOBALFOUNDRIES, is to buy Singapore’s state-sponsored Chartered Semiconductor.
Advanced Technology Investment Company, LLC will pay more than 14 percent above the firm’s valuation to assume ownership.
Chartered Semiconductor was created out of Singapore Technologies Engineering in 1987 and began public trading in 1999. The firm specializes in custom ICs such as those found in the heart of the Xbox 360, and it is the third largest outfit of its type. The company is majority owned by Temasek, the investment arm of the Singaporean government, and is one of many such Temasek-linked companies (TLCs) that account for more than 60 percent of the nation’s GDP. Because of the central role of TLCs in the Singaporean economy, the loss-making Chartered has been on block for some time.
The new Chartered/GLOFO marriage will be overseen by GLOFO chief exec Doug Grose, while Chartered’s CEO Chia Song Hwee will move to COO and oversee the integration operations.
The merger should turn Chartered’s finances, please the Singaporean feds, and give GLOFO access to some 11 percent of the custom chip market–up from an insignificant percentage–which means everyone seems to win.
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