June 23, 2006 2:34 PM PDT

AMD in deal to build chip factory in New York

Advanced Micro Devices has entered into a nonbinding agreement with the state of New York that calls for building a $3.2 billion microprocessor plant in Saratoga Springs.

AMD's prospective fabrication plant is tagged for a 200-acre site at the Luther Forest Technology Campus, the chipmaker said on Friday. AMD envisions a 1.2 million square-foot facility, which would likely produce microprocessors based on 32-nanometer manufacturing technology. The company, however, has to first deliver its chips based on 45-nanometer manufacturing technology, which it expects to introduce in mid-2008.

"This is a nonbinding agreement and provides us with flexible planning for now and in the future," said Preston Snuggs, vice president of AMD's manufacturing systems. "We expect to grow year over year...and the products will become more complex year over year, so all that drives the need for more (manufacturing) capacity."

The agreement calls for AMD to begin construction as early as mid-2007, possibly putting the plant online in 2010.

The state of New York has offered to help subsidize the $3.2 billion cost with $1 billion in incentives.

Additional issues played a role in the selection of New York as a fabrication site. AMD has a number of employees working at IBM's facilities in New York, and it is also a partner with the Albany Center for Excellence in Nanotechnology, said Snuggs.

He added that the agreement may be further along in the finalization process by the end of the year.

AMD's announcement comes a day after Intel issued a statement regarding the opening of its 65-nanometer plant in Ireland. The new plant and 65-nanometer technology are expected to help Intel move forward with a new line of multicore goods.

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18 comments

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How are they going to finance this fab
I am Skeptical they will deliver by 2010 using this fab. Even if they build this fab (along with 2 other fabs they promised), it will be an empty shell- with no equipment. They are assuming they will make money the next 4 years that is significant to spare $4b for this fab only! Seems to me like a fairy tale!
Posted by ilover2 (17 comments )
Reply Link Flag
Might not be hard
First off, the cost is not 4B, it is 3.2B with 1B of that being subsidized.

The cost to them I believe is actually closer to 2.2B.

Your "empty shell" refrence is also off base, as I am sure the 3.2B cost would include more than just the building structure unless they are building it from solid gold.

I am happy to see a company realize that their are more locations in the US than just Silicon Valley.

One thing I am unsure of is the refrence to 1,200 to 2000 employees.

In a 200 acre facility with that few employees, if they need to communicate they may have to drive over.
Posted by Dachi (797 comments )
Link Flag
$3.2B is more than enough to equip it too
I don't know how much you think it costs to build a building, but the cost of the building itself should only be in the $100's of millions. The remaining billions is the cost of all of that semiconductor equipment. AMD already has two multi-billion dollar fabs in Dresden, Germany, and in the past it has had fabs in Austin, Texas. So this company knows a bit about building fabs, and what to put into them.

And New York taxpayers should expect to see another fab going up next door to this fab in another couple of years after this one is completed and operational. In Dresden, AMD initially built one fab, Fab 30, and then a few years later it built a second fab, Fab 36. Fab 36 is now operational, and they are getting ready to wind down operations in Fab 30, in preparation for an upgrade to the older fab. In 2008, Fab 30 will reopen as Fab 38 fully modernized. This seems to be a pattern that AMD prefers, having two redundant fabs available, both producing for as long as they can, and then it does a major upgrade of the older one while the newer one keeps running until it too needs an upgrade. Alternating production between them.
Posted by bbbl67 (25 comments )
Link Flag
How are they going to finance this fab
I am Skeptical they will deliver by 2010 using this fab. Even if they build this fab (along with 2 other fabs they promised), it will be an empty shell- with no equipment. They are assuming they will make money the next 4 years that is significant to spare $4b for this fab only! Seems to me like a fairy tale!
Posted by ilover2 (17 comments )
Reply Link Flag
Might not be hard
First off, the cost is not 4B, it is 3.2B with 1B of that being subsidized.

The cost to them I believe is actually closer to 2.2B.

Your "empty shell" refrence is also off base, as I am sure the 3.2B cost would include more than just the building structure unless they are building it from solid gold.

I am happy to see a company realize that their are more locations in the US than just Silicon Valley.

One thing I am unsure of is the refrence to 1,200 to 2000 employees.

In a 200 acre facility with that few employees, if they need to communicate they may have to drive over.
Posted by Dachi (797 comments )
Link Flag
$3.2B is more than enough to equip it too
I don't know how much you think it costs to build a building, but the cost of the building itself should only be in the $100's of millions. The remaining billions is the cost of all of that semiconductor equipment. AMD already has two multi-billion dollar fabs in Dresden, Germany, and in the past it has had fabs in Austin, Texas. So this company knows a bit about building fabs, and what to put into them.

And New York taxpayers should expect to see another fab going up next door to this fab in another couple of years after this one is completed and operational. In Dresden, AMD initially built one fab, Fab 30, and then a few years later it built a second fab, Fab 36. Fab 36 is now operational, and they are getting ready to wind down operations in Fab 30, in preparation for an upgrade to the older fab. In 2008, Fab 30 will reopen as Fab 38 fully modernized. This seems to be a pattern that AMD prefers, having two redundant fabs available, both producing for as long as they can, and then it does a major upgrade of the older one while the newer one keeps running until it too needs an upgrade. Alternating production between them.
Posted by bbbl67 (25 comments )
Link Flag
Hope us NY taxpayers see a return ! !
$ 1 Billion dollars just thrown into the mix like that: hope that the expected 1,200 - 2,000 jobs (NY Times article of June 23) actually materialize since we taxpayers will be paying a staggering $500,000 per job to enable this.
Do our NY leaders actually do any math ???
Posted by eeemang (217 comments )
Reply Link Flag
Hope us NY taxpayers see a return ! !
$ 1 Billion dollars just thrown into the mix like that: hope that the expected 1,200 - 2,000 jobs (NY Times article of June 23) actually materialize since we taxpayers will be paying a staggering $500,000 per job to enable this.
Do our NY leaders actually do any math ???
Posted by eeemang (217 comments )
Reply Link Flag
Yes $500,000 per job in NY Taxpayer support
The governor and Legislative leaders are expected to announce the plan for a huge semiconductor plant north of Albany before the end of the day. Advanced Micro Devices would receive $1 billion in state subsidies and create between 1,200 and 2,000 jobs, according to officials. The plan was a priority of Senate Majority Leader Joseph L. Bruno, the capital region's chief Legislative patron.

"I don't want to talk about it, but I do expect we will have that announcement later today," the governor said this morning. "That announcement was contingent on our being able to outcompete some other areas, including foreign countries."

The speaker of the Assembly, Sheldon Silver, a Manhattan Democrat, pushed for more money in the budget for New York City. Mr. Pataki said Republicans had agreed to a plan to distribute an additional $300 million to cities across the state, including New York, over the next three years.
Posted by eeemang (217 comments )
Reply Link Flag
Yes $500,000 per job in NY Taxpayer support
The governor and Legislative leaders are expected to announce the plan for a huge semiconductor plant north of Albany before the end of the day. Advanced Micro Devices would receive $1 billion in state subsidies and create between 1,200 and 2,000 jobs, according to officials. The plan was a priority of Senate Majority Leader Joseph L. Bruno, the capital region's chief Legislative patron.

"I don't want to talk about it, but I do expect we will have that announcement later today," the governor said this morning. "That announcement was contingent on our being able to outcompete some other areas, including foreign countries."

The speaker of the Assembly, Sheldon Silver, a Manhattan Democrat, pushed for more money in the budget for New York City. Mr. Pataki said Republicans had agreed to a plan to distribute an additional $300 million to cities across the state, including New York, over the next three years.
Posted by eeemang (217 comments )
Reply Link Flag
NYS seeing the light?
My father worked for 35 years at GE Aerospace in Utica. Starting as a junior engineer and ending up just about running the place.

During the late 60's and early 70's, there were 6000+ employees working at two facilities in Utica (R&D, and manuafacturing). By the time my dad left, there were less than 1000.

The reason? Like most companies, it was all about operating costs. But the odd thing is that Central NY is one of the more affordable places to live in America - always has been.

What really capped it was ruinous tax policies by the state government.

High taxes are what drove manufacturing out of CNY - to name a few examples: Chicago Pneumatic, Bendix, GE Aerospace (Lockheed Martin at the time of their exit).

Thousands lost jobs, and of course the tax base shrunk. Albany's reaction to this alarming sitation? To raise taxes on those poor souls remaining.

Going forward, the state legislature should pull it's collective head out of it's a** and offer tax breaks to both businesses as well as regular folks, and get hi-tech manufacturing as well as other business back.

Advantages to companies? A well educated local population, comparitively low cost of living for employees, good schools, etc.

Advantages to local govt? Breathe life back into dying towns and cities, which would expandthe tax base by bringing people back to the region.

New York state is rife with towns and cities that are continually heading downhill thanks to boneheaded policy decisions by state government.

Too bad, too - because it's a beautiful place to have kids, raise a family, etc.

The fatuous pinheads in Albany should rethink their currently ruinous tax policies and get business back to upstate NY.
Posted by gavster64 (4 comments )
Reply Link Flag
See how Hilary creates jobs?
See how Hilary creates jobs?
Posted by lingsun (482 comments )
Reply Link Flag
I dont know what Hillary has to do with this...
It was Senate leader "Gentleman" Joe Bruno, Assembly leader Sheldon Silver, and Gov. George Pataki.
Posted by R.Jefferson (136 comments )
Link Flag
See how Hilary creates jobs?
See how Hilary creates jobs?
Posted by lingsun (482 comments )
Reply Link Flag
I dont know what Hillary has to do with this...
It was Senate leader "Gentleman" Joe Bruno, Assembly leader Sheldon Silver, and Gov. George Pataki.
Posted by R.Jefferson (136 comments )
Link Flag
NYS seeing the light?
My father worked for 35 years at GE Aerospace in Utica. Starting as a junior engineer and ending up just about running the place.

During the late 60's and early 70's, there were 6000+ employees working at two facilities in Utica (R&D, and manuafacturing). By the time my dad left, there were less than 1000.

The reason? Like most companies, it was all about operating costs. But the odd thing is that Central NY is one of the more affordable places to live in America - always has been.

What really capped it was ruinous tax policies by the state government.

High taxes are what drove manufacturing out of CNY - to name a few examples: Chicago Pneumatic, Bendix, GE Aerospace (Lockheed Martin at the time of their exit).

Thousands lost jobs, and of course the tax base shrunk. Albany's reaction to this alarming sitation? To raise taxes on those poor souls remaining.

Going forward, the state legislature should pull it's collective head out of it's a** and offer tax breaks to both businesses as well as regular folks, and get hi-tech manufacturing as well as other business back.

Advantages to companies? A well educated local population, comparitively low cost of living for employees, good schools, etc.

Advantages to local govt? Breathe life back into dying towns and cities, which would expandthe tax base by bringing people back to the region.

New York state is rife with towns and cities that are continually heading downhill thanks to boneheaded policy decisions by state government.

Too bad, too - because it's a beautiful place to have kids, raise a family, etc.

The fatuous pinheads in Albany should rethink their currently ruinous tax policies and get business back to upstate NY.
Posted by gavster64 (4 comments )
Reply Link Flag
 

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