April 02, 2010 Contractors would benefit from expanded GlobalFoundries chip plant
GlobalFoundries is considering a $2 billion expansion at its Saratoga County computer-chip plant that would increase the size of the production and central utilities buildings by 345,000 square feet.
The expansion, which is not expected to boost employment beyond the projected 1,600 construction workers and 1,400 permanent jobs, would generate more work for some of the dozens of contractors already on the site.
GlobalFoundries filed an application this week with the Malta planning department to expand the size of the $4.2 billion project as the company weighs its options for increasing global production capacity, said company spokesman Travis Bullard.
The company has not yet committed to the expansions, he said. But new capacity is needed to meet the needs of GlobalFoundries growing customer base, Bullard added.
Expanding also could prove to be the most cost-effective means of increasing production capacity because the project is not yet completed, he said.
GlobalFoundries has two other 300 millimeter computer wafer manufacturing plants operating in Germany and in Singapore.
If the expansion happens, it is expected to be built within the current 30-month construction time frame that began eight months ago.
The deal may hinge on whether the state is able to offer additional incentives.
GlobalFoundries is negotiating with lawmakers for $300 million in incentives, said Assembly Majority Leader Ron Canestrari (D-Cohoes).
Theyre just too important to ignore. They have a proven track record; its not like a new kid on the block looking for additional money, Canestrari said. I want to do all we can to secure them here.
The state previously approved $1.3 billion in tax breaks and cash incentives to convince GlobalFoundries to begin building the chip plant in New York.
An additional incentive deal could mean billions of dollars of additional investment from GlobalFoundries, which would lead to additional long-term benefits for the states economy, Bullard said.
This is good news that a successful project already is thinking about expanding before its even finished, said Sen. Roy McDonald (R-Saratoga). These are negative economic times and there are certain things you have to cut, but we still need to invest in the future.
It is unclear if the states 2010-11 fiscal year will include cash for construction projectsalthough budget negotiations are continuing.
Its a very heavy lift, with the economic climate and budget conditions we face. If the bank is empty, the bank is empty, Canestrari said.
If a budget passes with no capital funds, Canestrari said he could scrounge around to collect unspent capital funds from the states current fiscal year, and redirect them to GlobalFoundries.
An expansion could increase the fabrication building by 267,000 square feet to 1.15 million square feet.
The central utilities building would grow by 78,000 square feet, Bullard said.
Malta planning officials said expansion plans are scheduled to be reviewed by April 20.
GlobalFoundries also is seeking approval for increased capacity of its electrical supply. Those plans could be reviewed prior to April 20
