Courtesy GlobalFoundries
GlobalFoundries received the final last local approval needed to go ahead with the construction of a second major building on its Malta property.
Officials said the billion computer chip factory will cost $6 billion to $8 billion. It comes as the computer chip industry worldwide has expressed the need to increase capacity to overcome a semiconductor shortage.
In another boost to the project, on July 28, the U.S. House of Representatives passed legislation to increase U.S. semiconductor manufacturing known as “CHIPS and Science Act” and the day before the U.S. Senate has passed his historic federal semiconductor incentive, scientific research, and technological competitiveness bill to bring manufacturing back from overseas to places like Upstate New York.
The CHIPS legislation now moves to the White House and awaits President Biden’s signature. The Biden Administration has been a strong supporter of increasing semiconductor manufacturing and the many jobs it creates in the U.S..
“With the votes taken in the House of Representatives and yesterday in the U.S. Senate, Congress has expressed broad, bipartisan and national support for leveling the playing field for competitive semiconductor manufacturing in the U.S.,” said Dr. Thomas Caulfield, GlobalFoundries president and CEO. “Congress took action to protect U.S. economic, supply chain and national security by accelerating semiconductor manufacturing on American soil.”
On July 26, the Malta Planning Board unanimously approved the 633,000-square-foot expansion. The vote came one day after the Stillwater Planning Board approved a smaller portion of the expansion that will be located just across the town line from Malta.
GlobalFoundries has selected JE Dunn of Kansas City, Mo., as the general contractor for the project. JE Dunn worked with GlobalFoundries about four years ago.
GlobalFoundries is under contract to purchase 800 acres in the Luther Forest Technology Campus. That is the technology park that surrounds the chipmaker’s existing $15 billion manufacturing complex.
The second factory will wrap around the southern and southeastern portions of the current factory constructed in 2009.
In addition to the second factory in Saratoga County, GlobalFoundries is in the midst of a $4 billion expansion in Singapore, plus additional investments to increase output at its factory in Dresden, Germany.
GlobalFoundries said it employs approximately 2,600 at the Malta complex and the second factory is expected to create an additional 1,000 jobs.
Regarding action in Congress, Sen. Chuck Schumer of New York said the bill means Upstate New York, “with its rare combination of a world-class workforce, advanced manufacturers, and renowned higher education institutions” is poised to reap great benefits.
“When you combine the chip manufacturing potential at sites like White Pine Commerce Park in Central New York, Marcy Nanocenter in the Mohawk Valley, and STAMP in Genesee County, with GlobalFoundries and Wolfspeed’s existing plants and onsemi soon acquiring a facility in East Fishkill, NY, all coupled with world-renowned research capabilities at the Albany Nanocenter and across the SUNY system and the state’s universities and labs, Upstate New York could be the nation’s leader in microchips and other tech industries that will dominate this century.
U.S. Rep. Paul D. Tonko, whose 20th District includes portions of Saratoga County, said “At a moment when supply chain delays and rampant inflation are straining the pocketbooks of hardworking families (the passage of CHIPS) will be a game changer for our economy, semiconductor industry, and Capital Region.
“The CHIPS Act will ensure the U.S. can out-compete any nation in semiconductor manufacturing while supporting a critical industry, driving research and development, and creating good paying jobs.
“The investment being made will pay dividends through creation of high-paying jobs, community vitality, research and development, and innovation in the U.S.,” Caulfield added. “For GlobalFoundries, joint GF-customer-government partnership is a great example of how our nation’s greatest challenges can be solved by embracing new strategies and partnering together.”
Once CHIPS Act funding legislation is signed into law, investments GlobalFoundries receives from the $52 billion in the legislation will be combined with similar investments being made by GF and its customers to expand the company’s manufacturing, research and development at its manufacturing sites in New York and Vermont.
Schumer said Currently, only 12 percent of chips are manufactured domestically, compared to 37 percent in the 1990s, and many foreign competitors, including China, are investing heavily to dominate the industry. Nearly 75 percent of global semiconductor production is now occurring in East Asia and foreign government subsidies drive the majority of the cost difference for producing semiconductors overseas.
Schumer said the legislation would help turn the tide on this trend by bringing manufacturing back to America, along with investing in other key technology and R&D so New York and the country can lead the world in innovation.
Gov. Kathy Hocul said the bills moved forward by Congress “ bring record investment and countless jobs to industrial areas, which is why we’re working just as hard at the state-level to cement our status as a leader in chip production. New York’s Green CHIPS bill, which passed overwhelmingly in the legislature with bipartisan support, will grow the state’s semiconductor industry responsibly and sustainably with major investments in workforce and community development. The combination of the state and federal CHIPS bills—in addition to our diverse talent pool, rich local resources, and ongoing investments—will help New York create 21st century jobs and technologies and become a global capital for chip manufacturing.”