For Mubadala, the investment vehicle and sovereign wealth fund of the Abu Dhabi government, Globalfoundries is proving to be a precarious investment.

Mubadala’s Advanced Technology Investment Company (ATIC) acquired Globalfoundries last year from AMD. Globalfoundries’ former owner spun off its last remaining stake in the company in March in exchange for the right to have its 28nm chips manufactured at other foundries.

As Hardware Canucks has previously reported, AMD parted ways with Globalfoundries because of the rather turbulent relationship the two companies had in 2011. AMD’s Opteron-based “Interlagos” chip shipped late because of of manufacturing yield problems at Globalfoundries Dresden fabrication facility.

Mubadala reported that ATIC had amassed a deficit $1.12 billion during the 2011 fiscal year, and also was not profitable for the past two fiscal years.

According to Reuters, which had obtained a year-end filing from Mubadala, ATIC isn’t projected to be profitable in the 2012 fiscal year or subsequent years.

Mubadala also reported that ATIC was making further investments in boosting capacity and research in a bid to become a “profitable catalyst” for further economic development in the emirate.

AMD has previously indicated to the media that it indents to continue to manufacture chips with Globalfoundries, however this relationship will not be exclusive allowing AMD to make Globalfoundries compete against its rivals.