The Foundry Company to get incentives from New York State


— 4:24 PM on December 17, 2008

The state of New York will provide AMD's future fab spin-off with incentives to build a facility on the Luther Forest Technology Campus, AMD has announced. The incentive package was originally offered to AMD a couple of years back, but the chipmaker's new fab spin-off plans technically mean a different firm—dubbed "The Foundry Company" for now—will be building the fab in the area.

AMD's latest announcement says the new chip manufacturing facility will be worth "approximately $4.6 billion," and construction will kick off in 2009 when the spinning-off process completes. The new facility will reportedly support 1,600 construction jobs, "with the potential for an additional 2,700 jobs added through economic multiplier effects." Once construction ends, AMD expects to create 1,400 manufacturing jobs with average yearly salaries of $60,000, and another 5,000 "indirect jobs" could sprout in the area.

As we reported earlier this month, AMD's updated agreement with ATIC and the Mubadala Development Company will see it own only 34% of The Foundry Company when the transaction closes. AMD will nevertheless have equal voting rights with ATIC, and former AMD executives (including Hector Ruiz and Doug Grose) will spearhead the operation.

 
   
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