Skip to comments.Global Foundries [AMD] commits to NY fab build out
Posted on 06/11/2009 6:49:47 AM PDT by xcamel
MANHASSET, N.Y. — Global Foundries has sent a formal commitment letter to New York state for the construction of the Fab 2 project at the Luther Forest Technology Campus in upstate New York.
The letter initiates the construction phase of the Fab 2 project and triggers the process of issuing state bonds for reimbursements payments and incentives to the company for the development of the estimated $4.2 billion wafer fab.
The purchase of 223 acres of land from the campus is set for Wednesday (June 10).
Global Foundries also has completed a development agreement with two New York townships which call for the chip maker to contribute $5 million, including $1 million towards the creation of a 32-acre public recreation complex. The remaining $4 million will be used to establish two independent foundations to establish community enrichment programs.
M+W Zander has been awarded a fab site development contract. The work will prepare the site for construction, including the official groundbreaking ceremony scheduled for July.
The construction project is expected to take approximately two years, and an additional 12 to 18 months to ramp up operations. Volume production is expected to begin around 2012.
The Fab 2 project is expected to create approximately 1,400 new manufacturing jobs once volume production begins, with an estimated annual payroll of more than $88 million. The project is expected to create approximately 5,000 indirect jobs in the region.
Construction is expected to cost about $800 million.
Why upstate NY? Is this an expansion of an existing plant?
Brand new $4 billion plant when finished.
That’s a great investment and I’m glad it’s here. I just re-built two computers for my sons at home. Actually they were so heavily re-built that they are in effect new computers with some parts salvaged from old computers. I used AMD Athlon X2 4850e 2.5GHz processors. Purchased from NewEgg with a motherboard combo, they were quite inexpensive. My boys are very pleased with their new computers and for future computer builds, I now have brand loyalty to AMD.
And since Intel sponsors Letterman, I’ve purchased my last Intel processor.
SUNYIT in Utica was setup to be "shovel ready' but we lost it thanks to Albany politics.
Utica was a Computer manufacturing town with Univac, Mohawk Data Sciences, International Computers Ltd, and many other smaller offshoots, all mostly gone, leaving a very depressed area the last two decades.
It could have helped this area allot.
How do you feel about Global Foundry being owned by Abu Dhabi?
"..letter initiates the construction phase of the Fab 2 project and triggers the process of issuing state bonds for reimbursements payments and incentives( billions? )to the ...
Fab plants are commodity makers. I.E. low profit. NY state's money came from robbing tens of thousands of small business, employing ten times the number of workers with five times the total salary. At least. Not to mention taking money and investment capital away from new, high risk enterprises of the future. This is welfare for AMD, upstate pol's, and the lazy, risk adverse investment class.
No different than I feel about buying a Honda built in southern Indiana.
Brand new $4 billion plant when finished.”
Can anyone tell me exactly what this new plant is supposed to produce??
I cannot find it in this excerpt.
AMD cpu’s, plus custom AMD chips.
(Global Foundries is a division/partner of AMD)
Even in prosperous areas of the United States, and even during the best of times, there is virtually no commercial economic development without some form of government support. I know; I serve on a local municipal body. We don’t give much in the way of support to commercial development, far less than our neighbors. As a result, they have more commercial development than we do. On the other hand, we also have lower tax rates than they do, and are in better fiscal condition. The reason is our neighbors’ projects are not generating sufficient revenue to pay for the development bonds, and the difference is made up by the taxpayers.
It’s not a good thing, but that’s they way things are in America. You either subsidize the development, or get very little. America has a very bad climate for business development, and it’s only getting worse. Unions, litigation, environmental regulation, taxation and zoning restrictions are all responsible.
What is a fab?
chip fabrication plant...
Eventually the taxvictims leave, although usually long after those that have made, and profited from the 'deal'( hooked up pols, contractors, Real Estate guys, zoning lawyers) have retired and left town.
Eventually, yes, that’s what happens. We are trying to not go down that road.
It’s a money extracting whore that is dangled in front of desperate municipalities to squeeze the last taxvictim out of his last dollar to go to investors.
Also, chips are made which can be made anywhere. Which, begs the question, why in upstate People’s Republik de Neuvo York? Why would way, way smarter, wealthier, world ranging investors go there? Because they were paid to, way way more, than any of the other ten place in the world.
Now, we know that NY state is in the best of hands and the state and all it’s high paid, high pensioned hacks would never, ever, never overpay. Right?
Over paying for this plant is like a farmer with throat cancer ordering a 50’ sailboat kit to build for his round the world cruise he always dreamt about. He’s dieing,but he’s got a spanky new hull and parts in the barn as soon as he gets over this cough and weight loss, it’s off to Tahiti!
We got a town surround by, say, ten other towns that has had the lowest tax rates for thirty years. They kind of have nothing but nice neighborhoods and happy taxpayers. Anyone wants to use some money pit project, they just drive to the other towns with near 50%, or more, higher taxes.
You spend your spare time kicking children and stomping on kittens and puppies too?
Get over your angry, jealous self, will ya?
That’s kind of where we’re at.
There is a reason the worlds wealthiest individuals read economics.
Most thieving is done by subterfuge and a pen. No human organizations steal as much as government.
This is a conservative site. Thief, by force or guile is frowned upon.
Try to stretch your mental matchbox of an intellect, and get with the general theme of Freerepublic. Ten Commandments, limited government and self improvement.