Abu Dhabi invests $10 billion in New York -

ATIC supremo Ibrahim Ajami has told Reuters he is investing $10 billion in GlobalFoundries' upstate New York semiconductor factory.

ATIC owns GlobalFoundries (GloFo), after buying out AMD in March 2012. It is controlled by the Abu Dhabi state investment fund Mubadala.

Ajami said that Mubadala has confirmed that it will invest an additional $9-10 billion for expansion of its fab in New York.

ATIC wants to start making profits by 2015, and also plans to invest in GlobalFoundries' chip manufacturing facilities in Germany and Singapore, Ajami said.

The New York factory, which started in 2012, has the capacity to produce 300 mm wafers at about 60,000 a month, however Ajami wants the plant to make 20 and 14 nanometres chips in the next three to four years.

The investment does sound rather a lot, but 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.

However, chip manufacturers will continue to grow at a double-digit pace as more firms outsource production to companies like GloFo, he said.