Governor Paterson breaks ground on GlobalFoundaries' Fab 2 project
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1 Governor Paterson breaks ground on GlobalFoundaries' Fab 2 project August 21, Front Section Governor David Paterson, GlobalFoundries U.S. Inc., Advanced Micro Devices (AMD) and senior state officials recently broke ground for "Fab 2," GlobalFoundries' 1.3 million s/f semiconductor wafer fabrication facility at Luther Forest Technology Park in Saratoga County. The new facility will be one of the most advanced semiconductor manufacturing plants in the world. "As one of the largest public-private sector investments in NYS history, this project will fuel long-term growth in the Capital District and cement our state's reputation as a world leader in New Economy innovation," Paterson said. "This region's highly-skilled and educated workforce was a key reason GlobalFoundries decided to locate a facility here. I would like to
2 thank governor George Pataki and senator Joe Bruno, as well GlobalFoundries chairman Hector Ruiz, for securing such a major, high-tech project at the Luther Forest Technology Campus." The project is anticipated to create approximately 1,400 new direct semiconductor-manufacturing jobs at full-scale production, with an average annual salary of $60,000 per year and an estimated annual payroll of more than $88 million. It is also expected to create an additional 5,000 indirect jobs in the region with a sustained estimated total payroll for both direct and indirect jobs of $290 million per year. The project will generate approximately 1,600 new construction jobs, plus an additional 2,700 local construction-related jobs. The project's total capital budget, estimated at approximately $4.2 billion including local construction expenditures of approximately $800 million, will provide an immediate boost to the regional economy. NYS has offered the company an assistance package with a total value of $1.37 billion. This announcement builds off an agreement reached between New York State and AMD in June In recognition of this agreement, NYS will provide a $665 million capital grant to offset the construction and research and development activities for the Luther Forest project. The project is also eligible for benefits through the Empire Zone program currently estimated at $700 million over a 15-year period. Production at Fab 2 is expected to start in The facility will produce a 300-millimeter wafer at 28-nanometer node, which is two generations ahead of the current cutting-edge chip (45-nanometer). The development of the site will allow for the potential building of up to three chip fabrication plants. Earlier this year, Paterson provided leadership in the negotiation of a Project Labor Agreement (PLA) between the Greater Capital District Building and Construction Trades Council AFL-CIO and M+W Zander. The agreement takes into account the unique requirements of a world-class facility and its signing in June allowed construction to move forward. Under the PLA, local building trades have pledged not to strike or engage in other actions that would impede construction. GlobalFoundries is a new global company created by AMD and Advanced Technology Investment Company of Abu Dhabi. AMD designs and manufactures microprocessors. Chairman of the board for GlobalFoundries Hector Ruiz said, "The partnership with NYS and governor Paterson has been instrumental in making today's groundbreaking of the most
3 technologically advanced semiconductor fab in the world a reality. It is through our public-private partnership that we have been able to be a beacon of hope in these tough economic times, positioning NYS and the nation to be a leader in the industry." The following statements were provided in support of the Fab 2 project: U.S. senator Kirsten Gillibrand said, "Today's announcement is a major step forward in our work to make the Tech Valley Region a global center of excellence for nanotechnology and advanced technology manufacturing. Not only will the Fab 2 project inject billions of dollars and thousands of jobs into our economy, it will generate new research and development opportunities for our universities, attract other companies to locate in our communities, and help our existing small and medium sized businesses grow and prosper." Congressman Scott Murphy said, "GlobalFoundries is creating thousands of jobs in upstate New York that will build a prosperous economy for the long term. I am honored to welcome them to the 20th district, and look forward to continuing to work together to grow our economy and make New York a global leader in hi-tech job creation for the innovation economy." Congressman Paul Tonko said, "GlobalFoundries could have gone anywhere in the world to build this advanced chip manufacturing plant, but they chose the Capital Region, proving that the vision to make smart investments in high technology is paying off. This facility will create hundreds of jobs, pump millions of dollars into our local economy, and serve as a lure to attract more high tech companies to our region." Senate president Malcolm Smith said, "Breaking ground on the Fab 2 project symbolizes more than just the beginning of a new chip production facility, it symbolizes the beginning of new markets and jobs coming to NYS. Upstate's economy has traditionally been driven in large part by the manufacturing industry. By attracting one of the most advanced semiconductor manufacturing facilities in the world here we are ensuring that the upstate economy will grow and be an attractive place for other high-tech companies to locate their facilities bringing thousands of jobs and billions of dollars in new investments to the region." Assembly speaker Sheldon Silver said, "Especially during these uncertain economic times, it is crucial that we continue to invest in our infrastructure and our human capital to safeguard long-term job growth and the future prosperity of our state. Our investments in the academic research and development have paved the way for this next step of high-tech manufacturing. Projects like this have made the Capital District a world-class technology center, first envisioned over a decade ago. It is now a model of how a successful partnership can lead to
4 high-tech economic development and job creation." Senator Neil Breslin said, "It is a good feeling to finally break ground on this very important economic development project because of how broadly the chip factory will benefit the Capital Region. Going into this project, we knew that long-term success depended on making the right decisions from beginning to end, including a satisfactory PLA. It required diligence and being involved at every stage of negotiations to make sure this opportunity did not slip through the cracks. The good work of so many people means that we will create new jobs, better attract new businesses, and develop upstate as a major competitor in the global technologies market." Senator Roy McDonald said, "I am excited and grateful that this project is being built here in my district. I'm thankful to the governor, the state legislature and the local town and county governments for this very successful partnership. It's all about jobs." Senator George Onorato, chair of the senate committee on labor, said, "This new chip plant will provide a tremendous boost for the Capital Region and state economies, and the project labor agreement negotiated for the construction work sets an important standard for all future state-funded economic development projects. Local workers will be hired, prevailing wages will be paid, and we are taking concrete action to recognize the abundance of skilled construction workers in New York who will help us to move forward in building this chip plant and advancing other new-era industries." Assembly majority leader Ron Canestrari said, "Advanced Micro Devices is a world leader in computer chip technology. The company's decision to construct a manufacturing facility in Saratoga County will benefit not only AMD but the Upstate economy as well by creating well-paying manufacturing jobs and stimulating business in the region. This investment will enhance New York's reputation as a premier location for high-technology firms. My thanks to governor Paterson for helping to make this ground breaking a reality." Assemblyman John McEneny said, "Our investments in the State's economy have helped the Capital Region become a center for nanotechnology. As this project moves ahead, we will continue to see the creation of high-tech sector jobs, while developing the technology of the future." Assemblyman Tim Gordon said, "This project further establishes the Capital Region as a global leader in technology development and promises the firm footing we need to spur regional economic growth and create thousands of jobs for local residents. The groundbreaking of this new facility marks a long-term investment that will continue to pay
5 dividends for years to come." Assemblyman Tony Jordan said, "This is an enormous investment in the Capital District, and represents the type of smart, responsible growth that will create good-paying, high-skilled jobs and transform our region into a world leader in cutting-edge, advance technology and innovation." Assemblyman Bob Reilly said, "This facility will provide an immediate and long-lasting boost to the local economy and is a big step towards positioning the Tech Valley as one of the nation's leading technology corridors. The jobs of tomorrow are here today and we need to do all we can to make sure that the Capital Region is prepared for this new economy. I applaud governor Paterson and everyone else involved for helping make this project a reality." Empire State Development chairman & CEO, designate, Dennis Mullen said, "Fab 2 has been a priority project for NYS for years and I am pleased to finally see it come to fruition. Not only will this project inject billions of dollars into the local economy and create jobs, it will attract other high-tech companies competing in the global marketplace to our communities." Ed Malloy, president of the NYS Building & Construction Trades Council, said, "The NYS Building & Construction Trades Council would like to publicly acknowledge the efforts of governor Paterson and his staff in making this project a reality. The benefits that will be seen in upstate New York in terms of economic development, construction employment, and permanent job creation could not come at a better time. The unionized construction industry is proud to be playing a major role in this venture, and we look forward to doing our part to ensure its success." New York Real Estate Journal - 17 Accord Park Drive #207, Norwell MA (781)
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