June 04, 2010 GlobalFoundries' $75M Saratoga expansion will meet future needs The Business Review (Albany) - by Robin K. Cooper
GlobalFoundries will move forward this month with a $75 million cleanroom expansion at the $4.2 billion computer-chip plant it's constructing in Saratoga County.
The expansion from 210,000 square feet to 300,000 square feet of manufacturing space is part of what could become an additional $2 billion investment in Malta.
By expanding the cleanroom shell [in Malta] now during the current construction process, we will create much needed flexibility and room for additional future capacity, said Doug Grose, GlobalFoundries CEO.
The larger investment would cover plumbing, heating, ventilation and multi-million dollar chip-making tools needed to operate the expanded portion of the plant, said company spokesman Travis Bullard.
GlobalFoundries, expected to employ up to 1,400 workers at the plant, also may add as many as 200 jobs in New York if there is demand to use the expanded manufacturing space, Bullard said.
The company negotiated an agreement with the state to provide $15.8 million in cash incentives to help finance the project, according to the Empire State Development Corp. officials.
We know that by continuing to invest in New Yor's high-tech industries, we will better position ourselves as a global leader in new economy innovation and get New York on the path to economic recovery, said Dennis Mullen, chairman and CEO of Empire State Development.
GlobalFoundries, based in Sunnyvale, California, could be eligible for approximately $475 million in new economic development incentives once the semiconductor tools and other upgrades are made to the manufacturing area, Bullard said.
Those incentives would be in addition to the $1.3 billion incentive package the state already authorized to convince GlobalFoundries to build in New York. Construction of the chip plant began in July.
The expansion is part of several new projects. GlobalFoundries also is planning a $1.5 billion expansion at its plant in Dresden, Germany. An addition in Singapore already is underway.
Those efforts come as GlobalFoundries has agreed to work with its majority owner, Advanced Technology Investment Co. of Abu Dhabi, to help plan a new technology park in Abu Dhabi.
GlobalFoundries wants to increase its manufacturing capacity at the Malta plant by 50 percent to 60,000 chip wafers per month, Bullard said.
The plant is expected to begin operating in 2012.
The added capacity in New York would work in tandem with expansion efforts in Singapore and Germany to ensure that the company meets the needs of its growing customer base.
The demand for computer chips is growing following a downturn over the past two years, Bullard said.
