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Costing $3.5 billion, the new fab is set to open in 2010

Earlier this month, DailyTech brought you details about AMD's plans to open a fabrication facility in the state of New York. Although details at the time was sketchy and most of the information was unconfirmed, AMD's chairman Hector Ruiz this week announced that AMD will indeed be opening a facility in New York's Luther Forest Technology Park in Saratoga County.

AMD is expected to be spending upwards of $3.5 billion by the time the plant is finished. The plant is going to be home to more than 1000 employees and AMD says it should be completed sometime in 2010. In previous reports circulating online, it was indicated that New York state had been busy putting together an incentive package for AMD worth somewhere around the $1 billion mark. For New York state, having AMD build a new facility will introduce a big boost for the economy -- new jobs are created and the state gets more taxes. AMD is investing a lot into expansion recently, as the company also announced plans to spend roughly $2.5 billion to increase capacity at its Fab 30 facility in Dresden, Germany.

On the other side of the fence, Intel is making an effort to expand as well. Being AMD's biggest competitor, Intel announced too that it would build a new facility in Europe. Spending about $2 billion, Intel will open its first 65nm facility in Europe. Called Fab 24-2, it will be a major expansion on Intel's existing Fab 24 and will bring 300mm wafer production into the production line. Intel says that Fab 24-2 will be one of its largest.

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By Beenthere on 6/24/2006 12:32:56 PM , Rating: -1
The Billion dollar carrot may be enough for AMD to build in NY but I'm not convinced until I see it actually happen. NY has a way of screwing-over people and businesses so we'll see what actually happens.

By MoonSword on 6/24/2006 1:15:29 PM , Rating: 2
Too true. I've lived in NY all my life (coincidentally, not far from Malta, where the AMD plant is to be built), and the three men that run the state (Governer George Pataki, Senate majority leader Joseph Bruno, and Legislative majority leader Sheldon Silver) keep raising taxes and misspending the money for pork and political gain. Not just businesses, but everyone feels the pinch. It's simply a bad situation created by bad government. It is no wonder that the cost of living in NY is way above the national average.

I have two concerns. One: Where is AMD going to find the talent? Not SUNY (State University of NY). The closest SUNY college to Malta is SUNY Albany, and their computer science cirriculum is a complete joke. I know because I attended. I spent $15k and two years at SUNY Albany and came out even more ignorant than when I started... at least another college was able to get me back up to speed, well enough where I graduated magna cum laude in comp-sci. Some have noted that SUNY Albany built that chip R&D center, but for what? Their comp-sci dept has the highest turnover of dropouts/transfers in the whole university! No surprise considering how horrible the cirriculum is.

Perhaps local private Colleges like RPI, Union, Siena, and St. Rose may be able to provide. God knows upstate NY has a lot of private colleges.

But my second concern is that this deal, should it happen, may inevitably screw over Malta just like GE did to Schenectady years ago. It's not wise for a community to put so much of their dependancy on a single large corporation, for should that corporation decide to cut jobs and move the majority of its work force out of state (as GE did), the massive economic loss may very well turn the town into a dump (as Schenectady has).

By AncientPC on 6/24/2006 2:08:57 PM , Rating: 2
I don't think you need to worry too much about where the engineers will come from. People will go where the jobs are, and in recent times America's population has been migrating towards the sun belt states. We've seen a population explosion in Dallas, Atlanta, etc.

I'm sure many people will relocate to NY if they get jobs at the new fab plant.

By Icepick on 6/24/2006 5:30:12 PM , Rating: 2
I live near Malta too and am happy to see a major player invest so much in this area. It's refreshing to see companies move into the capital district and not out of it.

As far as the talent pool there is plenty of it around here. You can bet that graduates from colleges like RPI and Union will find employment there. Additionally, people are relocating to the Albany area from NYC all the time. There are also plenty of immigrants moving here from over seas. There will be NO problem staffing the new plant.

Hopefully this will start a chain reaction that will finally bring some good jobs to this area.

By CompMan86 on 6/24/2006 6:12:29 PM , Rating: 2
Don't forget Cornell :-)

By mpc7488 on 6/24/2006 11:15:33 PM , Rating: 2
Don't forget RIT, UofR, Clarkson and RPI, there are a slew of engineers available. I do agree with you on the taxes though, I can't imagine the breaks that AMD must be getting to agree to locate here. Maybe Spitzer will shakes things up, but NY will always be a high tax bracket area.

By Zoomer on 6/28/2006 10:50:05 PM , Rating: 2
How good are these colleges really?

There are so many that it seems like an oversupply of universities.

By drwho9437 on 7/24/2006 1:58:08 PM , Rating: 2
Ummm. How can there be an oversupply? Lots of people come from out of state. RPI and Cornell are certainly considered very good (Cornell use to supply Bell Labs with all their PhDs). If NY people are looking for jobs for the state economy that might not happen directly, as companies like AMD recruit everywhere, but a good paying eng job no doubt helps local economy via a trickle down.

"This is from the It's a science website." -- Rush Limbaugh
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