January 07, 2009 AMD clears federal hurdle Treasury Department approves partnership with The Foundry Co.
By NEIL KIRBY
nkirby@poststar.com
MALTA -- Two down, one to go.
Officials with Advanced Micro Devices on Tuesday cleared another major hurdle in their efforts to build a massive computer chip factory in Malta, thanks to the U.S Treasury Department's OK of AMD's partnership with a foreign-based company that will oversee construction of the plant.
The announcement comes less than three weeks after the state gave the go-ahead for a $1.2 billion incentive package transfer to the new enterprise, dubbed The Foundry Co.
But the deal still hinges on shareholder approval, which officials say could come soon.
"We have not scheduled a specific date yet," AMD spokesman Travis Bullard said. "All I know is we're trying to get it set up quickly."
The federal government needed to approve the formation of the Foundry Co., because the company AMD is partnering with to create its new manufacturing arm is based in Abu Dhabi.
The Committee on Foreign Investment in the United States, a branch of the Treasury Department that looks at big business deals with foreign companies, had been studying the partnership to identify potential security risks. They gave the thumbs-up Tuesday.
"This puts us one step closer to our goal of being able to create this new Foundry Co., which will allow us to build the new state-of-art facility in Saratoga County," Bullard said.
The computer chip plant's construction at the Luther Forest Technology Campus in Malta is expected to bring more than 1,400 jobs to the region, with average salaries of about $60,000. The total payroll will be about $88 million annually.
Officials also estimate another 5,000 jobs would be created as a result of the growth.
AMD has until March 7 for shareholders to seal the deal, but either AMD or Advanced Technology Investment Company, the Abu Dhabi-based company, can renegotiate if they don't meet this date, Bullard said.
He said the company will hold a meeting at either its Austin, Texas, campus or headquarters in Sunnyvale, Calif. Shareholders can also vote by proxy, or in absentia if they want.
Bullard said an announcement of when the company will break ground should come shortly after the final formation of the Foundry Co. and its domestic arm, AMD Fab Technologies USA, which recently received the $1.2 billion package of perks and tax breaks from the state.
The groundbreaking date could be as early as this summer, officials said.
