SAN JOSE, Calif. -- Can GlobalFoundries Inc. overtake SMIC, TSMC and UMC in the foundry business?

Answer: It remains to be seen.

As reported, Abu Dhabi's Advanced Technology Investment Co. said it has agreed to acquire Singapore-based Chartered Semiconductor Manufacturing Co. Ltd., for a total of $3.9 billion, continuing its expansion into the contract wafer production business.

Chartered will be folded into GlobalFoundries, the former manufacturing division of Advanced Micro Devices Inc. floated as a separate entity earlier this year by ATIC.

Pooling resources from Chartered and GlobalFoundries will enable the new company to better compete in the tough wafer supply industry with market leader Taiwan Semiconductor Manufacturing Co. Ltd.

''Change is on the horizon. Advanced Technology Investment Company LLC (ATIC) and Chartered Semiconductor Manufacturing (Chartered) have entered into a definitive agreement whereby ATIC will acquire Chartered,'' said Joanne Itow, an analyst with Semico Research Corp.

''What does this mean? Semico does not think that TSMC will be 'dethroned' as the leading foundry but it does mean that the number two spot is definitely up for grabs,'' she said. ''Semico's data indicates that by 2011, the combined GlobalFoundries/Chartered company will out pace UMC--in terms of advanced capacity available for production.''

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