x Abu Dhabi, UAE Thursday 20 July 2017

Atic plans to raise stake in Globalfoundries to over 90%

The Advanced Technology Investment Company plans to increase its ownership of the chipmaker Globalfoundries to above 90 per cent by the end of the year.

Abu Dhabi's Advanced Technology Investment Company (Atic) plans to increase its stake in the Globalfoundries microchip business to over 90 per cent by the end of the year, a senior executive said today.

ATIC's stake rises as it pours investment into Globalfoundries, in which it last year acquired a 65.8 per cent stake for US$2.1 billion (Dh7.71bn).

"Today, it's an 87 per cent ownership stake in Globalfoundries. By the end of the year it will be around 90 per cent or just over 90 per cent as we continue to contribute capital to the company," said Daniel Durn, executive director in charge of Atic's investments and strategy.

"As we contribute more capital to build up that footprint, the ownership will change," he added. "We will continue to increase our ownership stake."

Sami Issa, who is also an executive director at Atic, said construction of the Globalfoundries plant close to Abu Dhabi airport will begin next year.

The total estimated cost of the plant was previously put at $6bn to $7bn. But Mr Issa said the upper estimate had now been revised. "$6 billion to $8 billion is about the right target," he said.

bflanagan@thenational.ae