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 300 mm wafers. Initial production is expected to ramp at the 28 nm technology node and move to volume manufacturing on the 22 nm 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.