Sunnyvale, (CA) – Globalfoundries has started the legal process to establish Fab 2 at the Luther Forest Technology Campus in New York State. The company says it will create ‘thousands’ of new jobs, and hundreds of millions of dollars in economic development to upstate New York. Development of the 223 acre site is scheduled to begin on June 15 with the official groundbreaking set for July.
The company has sent a formal commitment letter to the State of New York for the construction of the new fab. The letter officially initiates the construction phase of the project and means the State of New York can begin the process of issuing bonds to pay for development of the $4.2 billion plant.
“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,” says Globalfoundries chairman Hector Ruiz. “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.”
The construction project is expected to take two years to complete and an additional 12 to 18 months to ramp to full operating mode, with volume production anticipated in 2012. The Fab 2 project is expected to create approximately 1,400 new direct semiconductor manufacturing jobs at full scale production with an estimated annual payroll of more than $88 million. 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.
The total capital budget for this project is estimated at approximately $4.2 billion, including local construction expenditures of approximately $800 million. Construction is expected to create approximately 1,600 new construction jobs, plus an additional 2,700 local construction-related jobs.
Globalfoundries has completed a development agreement with the Towns of Malta and Stillwater, agreeing to hand over $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 designed to provide dedicated funding for future community programs in each town.