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World's First Global Semiconductor Foundry Company Opens for Business

Published on March 4, 2009 at 12:37 AM

GLOBALFOUNDRIES, a new leading-edge semiconductor manufacturing company formed by a joint venture between AMD (NYSE: AMD) and the Advanced Technology Investment Company (ATIC), today announced its official launch and outlined plans to drive profound change and expand opportunities in the semiconductor industry. GLOBALFOUNDRIES is led by an experienced semiconductor management team, including CEO Doug Grose, formerly senior vice president of manufacturing operations at AMD, and Chairman of the Board Hector Ruiz, formerly executive chairman and chairman of the board at AMD. The Company is the only U.S. based global semiconductor foundry company and commences operations with approximately 2,800 employees worldwide with headquarters in Silicon Valley.

“The launch of GLOBALFOUNDRIES represents a historic day for our industry, one which will permanently change the market landscape by launching the world’s first truly global foundry services provider,” said Doug Grose, Chief Executive Officer of GLOBALFOUNDRIES. “With two committed joint venture partners providing strong technology and capital resources, our company brings a unique set of global capabilities to the market that will enable our customers to fully unlock their potential to innovate.”

GLOBALFOUNDRIES will service the manufacturing needs of AMD and will also offer an expanded roadmap of technologies to third-party customers through its high-volume, global foundry services. This means that for the first time, early access to volume chip production using leading-edge technologies will not just be limited to only high-end microprocessor makers.

“As consumers move to increasingly smaller and more energy-efficient devices, we need to remain aggressive in our technology development and ensure we have a full range of foundries available for our partners to get those products to market,” said Simon Segars, Executive Vice President and General Manager PIPD, ARM. “Through the integration of our processor and physical IP and our industry collaboration activities, we continue to drive the adoption of next-generation consumer electronics. We look forward to working with GLOBALFOUNDRIES as we explore implementing the ARM platform on their advanced process technology to support the growing demands of our partners around the world.”

To meet the long-term needs of the industry, GLOBALFOUNDRIES is proceeding with plans to expand its Dresden, Germany, manufacturing lines by bringing a second 300mm manufacturing facility with bulk silicon capabilities online in late 2009. The Dresden cluster will be re-named Fab 1 with Module 1 initially focused on production of high-performance 45nm Silicon-on-Insulator (SOI) technology, and Module 2 transitioning to 32nm bulk silicon capabilities.

In addition to Fab 1, the company also plans to begin construction on a new state-of-the-art 32nm and smaller features, $4.2B manufacturing facility at the Luther Forest Technology Campus in Saratoga County, NY, in 2009. This new facility will be named Fab 2 and is expected to create approximately 1,400 new direct jobs and more than 5,000 indirect jobs in the region. Once operational, Fab 2 will be the only independently-managed, advanced semiconductor manufacturing foundry in the United States, bucking the trend of manufacturing industries leaving the U.S.

“GLOBALFOUNDRIES introduces a new dynamic to our industry by bringing much needed choice and competition to the market for leading-edge foundry services,” said Hector Ruiz, Chairman of the Board, GLOBALFOUNDRIES. “In Dresden, Germany, we plan to deliver on our commitment to expand our industry-leading manufacturing cluster with a second facility for bulk silicon. In New York we plan to build a state-of-the-art wafer foundry, that once complete will be the most advanced of its kind in the world, creating new jobs and solidifying the region as a cluster for semiconductor innovation.”

GLOBALFOUNDRIES is jointly owned by AMD, an industry leading provider of processing solutions and ATIC, an investment company focused on advanced technology opportunities.

“Despite the current economic climate, this is an industry with tremendous opportunities for long-term growth and innovation,” said Waleed Al Mokarrab, Chairman, ATIC. “Through its global footprint, world-class technology know-how and access to state-of-the-art research and development, we believe GLOBALFOUNDRIES is well-positioned to challenge for market leadership in this competitive industry.”

AMD will continue to play a critical role in GLOBALFOUNDRIES’ future success as its shareholder and also as its first and largest customer.

“With the launch of a new global player in leading-edge manufacturing and AMD’s transformation into a processing design leader, we are creating two synergistic companies poised to bring significant innovation and impact to the global technology industry,” said Dirk Meyer, president and CEO of AMD. “GLOBALFOUNDRIES is the only partner with the capabilities to extend AMD’s heritage of manufacturing excellence and scale capacity to benefit the whole industry. This is a game-changing event, and we are excited about the possibilities.”

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