Advanced Technology Investment Company (ATIC) is making its next move in the semiconductor foundry game with a move to acquire Chartered Semiconductor in an all cash transaction worth approximately US$1.8 billion. The acquisition will also see Doug Grose, CEO of Globalfoundries take on the same role of the combined operations, with Chia Song Hwee, current CEO of Chartered, serving as COO and responsible for integration. The move would boost the competitive market share position of the combined entity and would via for second largest foundry in the industry with UMC. Temasek Holdings, which 62 percent of Chartered’s shares, supports the acquisition and has already voted in support of the transaction.
“Chartered’s board of directors recognizes the efforts of the management team and employees on the considerable progress they have made,” said Jim Norling, Chairman of the Board of Directors at Chartered. “Given the importance of scale and the need for substantial, continued capital investment, and having carefully assessed all strategic options available to Chartered, we believe this transaction provides Chartered shareholders the opportunity to realize their investment. In addition, it enables Chartered to accelerate its goal of becoming a leading player in the semiconductor industry. We have today appointed Deutsche Bank AG, Singapore Branch as an independent financial advisor to advise shareholders on the fairness of the offer, and we will submit the proposal for a shareholder vote.”
“We believe that by having access to ATIC’s long-term capital and related assets, Chartered has an opportunity to bring its skills, capabilities and leadership to the next level,” said Waleed Al Mokarrab, Chairman of ATIC. “By acquiring Chartered, ATIC is expanding its investments in the semiconductor industry.”
As a been proven with the leading foundry position of TSMC, major foundries need to offer capacity at both 200mm and 300mm wafer sizes as well as offer a broad process technology portfolio. With Globalfoundries only offering advanced 300mm capacity, ATIC was limited to approximately 20 or so companies to potentially become customers.
With the Chartered acquisition 200mm capacity is added as well as over 100 existing customers gained, some of which would also eventually migrate to production on the larger wafer size. Chartered also has one 300mm fab, which is capable of SOI and bulk CMOS production.