Mubadala Development, the Abu Dhabi state-backed investment fund, has acquired an 8.1 per cent stake worth $622 million in Advanced Micro Devices, the second-largest maker of computer chips.

The deal was priced at $12.70 a share, Advanced Micro Devices (AMD)’s closing level on Thursday.

AMD, which trails Intel in the microprocessor market, noted that the investment represents a non-controlling, minority holding and stressed that Mubadala will not receive any board representation.

Mubadala, which is wholly-owned by the Abu Dhabi Government and led by chief executive Khaldoon Khalifa Al Mubarak, holds stakes in businesses ranging from a mining joint venture with BHP Billiton in the Republic of Guinea, to a five per cent state in Ferrari, the Italian supercar marque.

Its investment in AMD drives the total value of sovereign wealth fund investments worldwide in the last two years towards an estimated $140 billion. Much of that spending has been fuelled by soaring oil costs.

However, the purchase may yet be investigated by the US Committee on Foreign Investment, which vets acquisitions by overseas investors on national security grounds. Technology and defence deals regularly come under particular scrutiny.

Shares in AMD have plummeted from $23 over the past year. As a newly aggressive Intel has staged a turnaround, AMD has struggled to cap costs and deliver new products on time.

The group introduced its first quad-core chip – which gathers four processors on a single piece of silicon – in September. However, the product’s initial clock speed of two gigahertz was slower than many industry watchers expected.

Also under scrutiny is AMD’s $5.4 billion acquisition of ATI technologies in 2005, a deal that increased the group’s exposure in graphics technology and made it the third-largest supplier of graphics cards.

Last month, AMD posted a larger-than-expected third-quarter loss, of $396 million, tied in part to a $120 million charge taken for the ATI acquisition.

The Mubadala move comes amid speculation that AMD is on the brink of a possible management revamp that could involve the departure of its chief executive, Hector Ruiz .

It is also rumoured that AMD is set to alter its strategy to focus on the development of new chips and move away from manufacturing — a so-called “fab light” model.

Shares in AMD 3.1 per cent to $13.09 ahead of the bell in New York.

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