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 ATIC owns unlisted GlobalFoundries, having completed a buyout of
joint venture partner Advanced Micro Devices Inc in March 2012. ATIC
is controlled by Abu Dhabi state investment fund Mubadala.
"We have received commitments from Mubadala for an additional $9-10
billion for expansion of our facility in New York," ATIC Chief
Executive Ibrahim Ajami told Reuters.
ATIC, which expects to be profitable by 2015, also plans to invest
in GlobalFoundries' chip manufacturing facilities in Germany and
Singapore, Ajami said, without elaborating.
The Saratoga County, New York factory, which started operations in
2012, has the capacity to produce 300 mm wafers at about 60,000 a
month. The wafers are used to make integrated circuits, which are at
the heart of all electronic devices.
ATIC wants to expand the factory to produce advanced chips with
features measuring 20 and 14 nanometers, or a billionth of a meter,
which will be growth areas in the next three to four years, Ajami
said.
Contract chip manufacturers regularly upgrade their factories to
produce smaller chips, a vital part of making electronic devices
smaller, such as thinner mobile phones.
GlobalFoundries competes against leading contract chipmaker Taiwan
Semiconductor Manufacturing Co, or TMSC, which is also investing
heavily in technology to maker smaller integrated circuits.
TSMC plans to invest $17 billion in new facilities in southern
Taiwan, where it will make 20 nm chips.
Growth rates are in the high single digits for the semiconductor
industry, which has been hit by falling demand for personal
computers as people switch to mobile devices such as tablets, Ajami
said.
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But chip manufacturers will continue to grow at a double-digit pace
as more firms outsource production to companies like
GlobalFoundries, he said.
Reacting to the slowdown in its core PC chip business, Intel Corp
recently said it plans to expand its small contract manufacturing
business and offer customers access to its chip factories, which are
the world's most advanced.
"It is competitive but lots of segments are demanding more and more
digital circuits such as automobiles, mobiles and electronics,"
Ajami said.
Plans to build a wafer fabrication plant in Abu Dhabi to make items
such as light-emitting diodes (LEDs) and computer processors, were
put on hold in 2011 due to tough market conditions.
But the company continues to invest in the oil-rich emirate,
especially in research, development and training, Ajami said.
Abu Dhabi, the capital of the United Arab Emirates, is investing
billions of dollars in industry, tourism and infrastructure to
diversify its economy away from oil.
(Additional reporting by Noel Randewich in San Francisco;
editing by
David French, Erica Billingham and Jeffrey Benkoe)
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