GLOBALFOUNDRIES
today announced it officially broke ground on the construction of Fab 2, a new
semiconductor manufacturing facility located at the Luther Forest Technology
Campus in Saratoga County, New York. Once completed, Fab 2 will stand as the
most technologically advanced semiconductor manufacturing facility, or fab,
in the world and the largest leading-edge semiconductor foundry in the United
States. The construction and ramp-up phases for the new $4.2 billion facility
are expected to take approximately three years to complete, with volume production
expected in 2012.
“Semiconductors are the building blocks of technology innovation and
are present in everything from mobile phones to kitchen appliances and solar
panels,” said Hector Ruiz, chairman of GLOBALFOUNDRIES. “As today’s
chip designers push the boundaries on the next generation of products, there
is a growing need for a new approach to design and manufacturing rooted in collaboration
and innovation. With Fab 2, GLOBALFOUNDRIES moves the semiconductor industry
away from the traditional model of isolated regional development and into an
era of global hubs of manufacturing and technology expertise.”
In the $200 billion global semiconductor industry, foundry services have become
largely anchored in Asia over the last few decades. However, Fab 2, in conjunction
with GLOBALFOUNDRIES’ Fab 1 facility in Dresden, Germany, will provide
semiconductor design companies access to a global network of manufacturing capabilities
for the first time.
Fab 2 is designed to manufacture microprocessors and logic products on 300mm
wafers. Initial production is expected to ramp at the 28nm technology node and
move to volume manufacturing on the 22nm node.
“With the development of Fab 2, we’ll take the first steps in realizing
our vision to harness resources and talent on a worldwide basis to enable our
customers product innovation to come to market faster and on the most advanced
technology platforms,” said Doug Grose, chief executive officer of GLOBALFOUNDRIES.
“Combined with our facility in Dresden, this fab will provide customers
access to a truly global foundry, offering scale, operational excellence and
leading-edge manufacturing capabilities.”
New York State has been a key partner in the development of Fab 2, committing
up to $1.2 billion worth of financial incentives towards the project —
the largest private-public investment in the history of the state. The fabrication
plant will bring immediate economic growth and opportunity to upstate New York
and will create approximately 1,400 new, direct semiconductor manufacturing
jobs at full scale production, providing an estimated annual payroll of more
than $88 million. In addition, the project will create approximately 5,000 new,
indirect jobs in the region, offering a sustained estimated total annual payroll
of $290 million for all jobs.
“New York has worked with GLOBALFOUNDRIES for three years to bring this
project to fruition and I am pleased to say that with the groundbreaking of
Fab 2, New York and GLOBALFOUNDRIES take a lead role in delivering the type
of economic growth needed to carry our nation toward sustainable growth,”
said Governor David Paterson of New York. “This initiative not only provides
our residents with a source for new jobs, but is integral in positioning New
York as a future hub of innovation and an attractive destination for additional
investment.”
The development of the Fab 2 facility is the latest step in the rejuvenation
of an area which was once known as a national leader in manufacturing and innovation.
GLOBALFOUNDRIES is already working with leading technology developers and academic
institutions in upstate New York, including scientists and engineers in IBM’s
Technology Alliance, on the research and development necessary for creating
the next generation of semiconductors. The investment in Fab 2 is a major step
toward positioning this burgeoning area as a driver of innovation, economic
growth and investment in New York State and a recognized technology hub.
U.S. Commerce Secretary Gary Locke added, “I applaud efforts to enhance
U.S. competitiveness in advanced technology manufacturing -- efforts that will
spur innovation and economic growth and create jobs.”
The construction project is expected to take approximately two years to complete
and an additional 12 to 18 months to reach full operating mode, with volume
production anticipated in 2012. The total capital budget for Fab 2 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.