Globalfoundries will lose cash for years -

The Abu Dhabi government's investment outfit, Mubadala seems content to underwrite huge loses at GloFo for the foreseeable future.

Mubadala reported that its semiconductor unit ATIC had an accumulated deficit of $1.12 billion as of the end of 2011 and made losses in the past two years.

For those who came in late, ATIC is GloFo's parent company and is the main focus of its semiconductor work. It does have small interests in Calxeda which is a developer of low power server chips.

To make matters worse, Mubadala admitted that it could not be certain that ATIC will be profitable in 2012 or in subsequent years.

Part of the problem is that ATIC was making further investments in boosting capacity and research in a bid to become a "profitable catalyst" for the emirate's economic development.

While heavy losses at Globalfoundries might be seen as the fact that AMD has appeared to walk away from the company, that impact might be overstated.

AMD expects to spend more on wafers with Globalfoundries in 2012 than it did in 2011. The fact that it is not part of AMD also means it can try to get deals from the company's rivals.

It would appear that much of the loss is the huge amount of investment ATIC is chucking at GloFo. It is not clear what its payoff will ultimately be and it appears to be happy to not make cash on its investment for years yet.