The latest media reports have suggested that a sum of S$2.68 a share in cash has been offered by Abu Dhabi's state fund ATIC, in order to purchase Singapore chip-maker Chartered Semiconductor, valuing the firm at $1.8 billion.

This has come as the second vast investment by Advanced Technology Investment Co in the global microchip industry, after it accepted to pay $2.1 billion in March for 55.6 percent of a joint venture with Advanced Micro Devices Inc (AMD), creating Globalfoundries.

The acquisition was fully supported by Singapore Temasek Holdings, which has a 62 percent stake in Chartered.

It will be during the fourth quarter when the transaction, which is subject to regulatory and shareholders' approval, might close.

Chartered said via a statement: "The deal represents an equity value of approximately S$2.5 billion, and a total value of approximately S$5.6 billion ($3.9 billion) including debt and convertible redeemable preference shares."

Chairman ATIC Waleed Al Mokarrab said: "We believe that by having access to ATIC's long-term capital and related -assets, Chartered has an opportunity to bring its skills, capabilities and leadership to the next level."

He added that the investments in the semiconductor industry - which currently consist of a Globalfoundries facility in Dresden, Germany, and a new, state-of-the-art facility under construction in New York - would be expanded by ATIC.

While Chia Song Hwee, CEO of Chartered will act as chief operation officer after the deal is completed; while Doug Grose, chief executive officer of Globalfoundries, would serve as CEO of the combined operations.