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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 Zoomer on 6/28/2006 11:02:19 PM , Rating: 2
The roads built to serve the plant is fine. There will be more investment around the plant (diners, housing, cinemas, malls, other entertainment, sports, hotels (for visiting company execs?), cleaning services, etc. These workers may have families. So schools, R&Rs, etc. The new facilities would attract even more workers.

Besides, there would be companies setting up shop besides the plant to provide goods or services to it. For example, transportation companies, packing material suppliers, the fab equipment's manufacturer's office for tech support or servicing when sometimes goes wrong, etc.

I believe economists call this the multiplier effect.


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