July 21, 2010 Chip plant taking big leaps By Eric Anderson & Larry Rulison - Times Union
COLONIE -- Total investment in the GlobalFoundries semiconductor plant in Malta has reached $6.5 billion, the state's chief economic development official said Tuesday.
Dennis Mullen, speaking at an editorial board meeting at the Times Union, said the higher number was due to a previously announced plan to expand the plant by 90,000 square feet, about two acres.
The Times Union has previously reported that an expansion of the factory, known as Fab 8, could potentially mean an added $2 billion investment by GlobalFoundries. But Mullen's comments are the first by a public official confirming the company's intention to move foward with plans to increase capacity at the plant.
Mullen said state economic development officials also were being told that Fab 8 would produce microprocessors on 450 mm wafers, much larger than the 300 mm wafers, roughly 12 inches, that are the industry standard. The plant is expected to be fully operational by 2013.
"They're going to 450," he said. "I don't want to speak for the company, but that's what we're being told."
Such a leap to the 450 mm level would make huge waves in the semiconductor industry, which has been carefully researching whether the move to larger wafers would be worth the added cost of redesigning manufacturing equipment, processes and clean room environments where the wafers are processed.
GlobalFoundries spokesman Travis Bullard said Tuesday that the company is still planning to install equipment that processes 300 mm wafers, adding that 450 mm technology is still in the "early research phase" and not ready for full-scale manufacturing.
"We see a lot of headroom left in 300 millimeter manufacturing and we have been focused on driving continued efficiencies in this process," Bullard said. "However, we are keeping our ears to the ground with customers and suppliers on 450 millimeters and will be ready when the market is ready."
Not too long ago, the industry transitioned from 200 mm wafers to 300 mm wafers, and it was expected that the next switch could be many years away. Each wafer can yield hundreds of chips that can be used in computers, cell phones and other electronics, and the industry is continually looking at ways to make more chips more quickly at a cheaper cost. Larger wafers could help the industry keep achieving that goal.
Bullard said that although the company is expanding the plant building, the company has not yet decided whether it will add an additional $2 billion worth of manufacturing equipment that would bring the price tag up to $6.6 billion from the current $4.6 billion.
"We estimate that the fit-up and tooling for the additional 90,000 square feet -- or "phase 2" as we call it -- would cost approximately $2 billion," Bullard added.
GlobalFoundries, which negotiated a $1.4 billion cash and tax break incentive package with New York state, is expecting to employ between 1,200 and 1,400 people at the factory, which will produce 60,000 completed wafers per month. Each wafer goes through hundreds of chemical processes over a 60-day period before they are finished.
