To celebrate its third anniversary as a chip manufacturing foundry, Globalfoundries
over the weekend announced an agreement with Advanced Micro Devices (AMD)
to buy out all remaining shares to achieve full independence. Under the amended agreement, AMD will continue to be one of Globalfoundries' "primary and strategic customers," only without a stake in the foundry, which is now wholly owned by the Advanced Technology Investment Company (ATIC).
"Today marks the start of a new era for Globalfoundries as it becomes a truly independent foundry," said Globalfoundries CEO Ajit Manocha. "Globalfoundries has a clear vision to be the leading semiconductor foundry partner to AMD and one of the world's top technology companies. We continue to execute on our strategy to propel ATIC's long-term investment philosophy into true value creation for our shareholder and customers."
Globalfoundries claims it was the only foundry to have shipped hundreds of thousands of 32nm High K Metal Gate wafers in 2011. Looking ahead, Globalfoundries has plans for more than $3 billion in capital spending in 2012 to expand its facilities in Singapore, Germany, and New York, the latter of which recently signed an agreement to develop leading-edge chips for IBM
AMD said it expects to take a one-time charge of $703 million in the first quarter of 2012, part of which includes a $425 million cash payment to Globalfoundries separated into chunks to be distributed through 2013. In return, Globalfoundries waived the exclusivity arrangement for AMD to manufacture certain 28nm APU products at Globalfoundries.