June 10, 2009 Chip plant seals deal By ANDREW J. BERNSTEIN, The Saratogian
MALTA Work on a 1.3 million-square-foot microchip manufacturing facility in the Luther Forest Tech Park is now set to begin.
On Tuesday, GlobalFoundries, the Sunny Vale, Cal., company planning to build the $4.2 billion facility, announced that it had issued a formal letter of commitment.
According to a company press release, the document initiates the construction phase, and triggers the state of New York to issue a series of financial incentives to the company.
"It was three years ago this month that we announced plans to build and operate the most advanced semiconductor manufacturing facility in the world in upstate New York," GlobalFoundries chairman Hector Ruiz said. "Over the course of that time we have worked hard to develop this project while reinventing our overall business strategy and ultimately launching GlobalFoundries as a new company. Along the way we have had tremendous support from the people of New York and it is with great pleasure that today we announce our official commitment and the start of the construction phase of this exciting project."
With the document now secure, GlobalFoundries will finalize the purchase of 223 acres from the Luther Forest Tech Park today.
Further details of the sale are expected to be announced at a press conference in Malta on Wednesday.
Architect M+W Zander has now been authorized to award a contract to clear and grub the site, and work is expected to begin on Monday.
A groundbreaking is scheduled for July.
In addition, development agreements with the towns of Malta and Stillwater have been completed, stipulating that GlobalFoundries will spend $1 million for the creation of a 32-acre public recreation field, and dedicate an additional $4 million to establish two independent foundations designed to provide funding for future community enrichment programs in each town.
Gov. David Paterson was quick to applaud the action:
"New York is in position to lead the nation in the New Economy. This project represents exactly the type of innovation and cutting-edge technology that will give our state a critical advantage moving forward. It is also the largest 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," Paterson said. "I want to thank Hector Ruiz and his team at GlobalFoundries for their commitment to this important project and their commitment to New Yorkers."
The construction project is expected to take approximately two years to complete and an additional 12 to 18 months to ramp up to full operating mode. Production will reach full volume in 2012.
The plant is expected to create approximately 1,400 new jobs in semiconductor manufacturing with an estimated annual payroll of more than $88 million, according to the companys press release. In addition, the project is expected to create approximately 5,000 new indirect jobs in the region with a sustained estimated total annual payroll of $290 million per year for all jobs.
GlobalFoundries was spun off from microprocessor developer AMD in April to serve as a production contractor for AMD and other firms.
