facebook rss twitter

State of New York Approves Transfer of Incentive Package from AMD to “The Foundry Company” for New Manufacturing Facility

Tags: AMD (NYSE:AMD)

Quick Link: HEXUS.net/qaqjh

Add to My Vault: x

Press release

- Final approval from New York review boards marks key milestone towards close of deal to create new company -

Albany, NY - Dec. 17, 2008 - The Empire State Development Corporation and the New York Public Authorities Control Board today voted to approve the transfer of development incentives from AMD to "The Foundry Company." The Foundry Company is the temporary name for the new U.S.-headquartered, leading-edge semiconductor manufacturing company announced in October and being created by AMD and the Advanced Technology Investment Company (ATIC) to address growing demand for independent, leading-edge foundry production capabilities.
The package of state incentives, which was originally negotiated between AMD and the State of New York in 2006, will be used to develop a 1.2 million square-foot semiconductor wafer manufacturing facility at the Luther Forest Technology Campus in Saratoga County, New York. Construction on the approximately $4.6 billion facility is expected to begin in 2009 following the close of the transaction between AMD and ATIC. The new semiconductor fab is expected to support about 1,600 new construction jobs, with the potential for an additional 2,700 jobs added through economic multiplier effects.
Once full scale production is achieved, the project is expected to create more than 1,400 new direct semiconductor manufacturing jobs with an average annual salary of $60,000 per year and an estimated annual payroll of more than $88 million. The project 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.
"This incentive package developed by New York is a clear differentiator in keeping this region competitive in the global technology marketplace. The support from the State of New York at all levels has been critical to the creation of The Foundry Company," said Hector Ruiz chairman of AMD, who will become chairman of The Foundry Company. "The approval to transfer the incentives is an important step in our process to create the new global foundry company and a state-of-the-art manufacturing facility that is expected to bring thousands of new jobs to New York."