GLOBALFOUNDRIES confirms New York fab
GLOBALFOUNDRIES has announced it has issued the formal commitment letter tothe State of New York for the construction of the Fab 2 project at the LutherForest Technology Campus (LFTC). The letter officially initiates theconstruction phase of the Fab 2 project and triggers the State of New York tobegin the process of issuing bonds for the payment of reimbursements and incentivesto the company for the development of the estimated $4.2 billion semiconductorwafer fabrication facility, or “fab.”
“It was three years ago this month that we announced plans to build andoperate the most advanced semiconductor manufacturing facility in the world inupstate New York,” said Hector Ruiz, chairman, GLOBALFOUNDRIES. “Over thecourse of that time we have worked hard to develop this project whilereinventing our overall business strategy and ultimately launchingGLOBALFOUNDRIES as a new company. Along the way we have had tremendous supportfrom the people of New York and it is with great pleasure that today weannounce our official commitment and the start of the construction phase ofthis exciting project.”
In preparation for officially breaking ground in July, GLOBALFOUNDRIES alsoannounced it has completed an Agreement with the Towns of Malta and Stillwater.Through the Development Agreement the company will contribute $5 million,including $1 million towards the creation of a 32-acre public recreation fieldcomplex. The remaining $4 million will be used to establish two independentfoundations designed to provide dedicated funding for future community enrichmentprograms in each town.
"New York is in position to lead the nation in the New Economy. Thisproject represents exactly the type of innovation and cutting-edge technologythat will give our state a critical advantage moving forward. It is also thelargest public-private sector industrial investment in New York State history,with thousands of new jobs and billions of dollars in capital expenditures,which will have an incredible impact," said Governor David Paterson."I want to thank Hector Ruiz and his team at GLOBALFOUNDRIES for theircommitment to this important project and their commitment to New Yorkers."
The construction project is expected to take approximately two years tocomplete and an additional 12 to 18 months to ramp to full operating mode, withvolume production anticipated in roughly 2012. The Fab 2 project is expected tocreate approximately 1,400 new direct semiconductor manufacturing jobs at fullscale production with an estimated annual payroll of more than $88 million. Inaddition, the project is expected to create approximately 5,000 new indirectjobs in the region with a sustained estimated total annual payroll of $290million per year for all jobs.
