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GlobalFoundries’ $11.6 Billion Investment to Expand Semiconductor Manufacturing Plant in Saratoga County

Transformative Expansion Project Will Establish a New 358,000 Square-Foot Manufacturing Facility on Existing Campus in Malta, Creating More Than 1,500 Direct Jobs and Thousands of Indirect Jobs

New York State Investment Will Unlock Nation-Leading Commitments to Workforce Development, Sustainability, and Community Investment

Project Will Also Leverage Significant Federal Investment Through CHIPS and Science Act, Solidifying Additional Community Benefits

Once Completed, New Facility Will Help to Grow Domestic ChipmakingCapacity, Bolster National Security, and Drive Unprecedented Local and Statewide Economic Growth in New York’s Capital Region

Builds on Governor Hochul’s Commitment to Establishing a Global Hub for Semiconductor Manufacturing in New York State

Governor Kathy Hochul today announced that Saratoga County-based GlobalFoundries will invest more than $11.6 billion over the next 10 years to expand its existing Fab 8 semiconductor manufacturing site in New York’s Capital Region. The transformative investment will allow the company to immediately expand its existing facility and then build a new, 358,000 square-foot semiconductor manufacturing facility on its campus in Malta, tripling its capacity to meet growing demand for chips, enhancing national security by expanding the United States’ chipmaking capacity, and creating more than 1,500 direct jobs and thousands of indirect jobs. The project builds on Governor Hochul’s successful effort to establish New York State as a global hub for semiconductor research and manufacturing, following the recent announcement of an historic $10 billion partnership to create the first publicly owned High NA EUV Lithography Center at NY CREATES’ Albany NanoTech Complex.

“New York State is becoming the best place on earth to build a business,” Governor Hochul said. “Thanks to our pro-business policies, commitment to innovation and best-in-the-nation workforce, green jobs and high-tech manufacturers are flocking to the Empire State. This $11 billion investment from GlobalFoundries is a game changer, and with the partnership of the Biden administration, New York’s congressional delegation, and all of our local stakeholders, the best is yet to come.”

Empire State Development President CEO and Commissioner Hope Knight said, “Whether through the State’s nation-leading Green CHIPS program that prioritizes community and sustainability or our Office of Strategic Workforce Development that is providing resources to train the next generation of workers, today, New York State is taking concrete actions to reshore the semiconductor industry. Under Governor Hochul’s leadership we are paving the way for economic growth by ensuring that companies like GlobalFoundries are growing here in New York State.”

New York Power Authority President and CEO Justin E. Driscoll said, “The Power Authority has worked closely with Governor Hochul and Empire State Development to maximize the benefits of low-cost hydropower from the ReCharge NY program throughout the state. We are collaborating to support Global Foundries during its successful continued expansion in the Capital Region, launching New York State into a world leader in semiconductor manufacturing.”

GlobalFoundries is a leading manufacturer of essential semiconductors that power everyday technologies that New Yorkers rely on. The company’s chips power features like mobile secure payment, airbag deployment, critical U.S. defense systems, and streaming devices and support fast-growing sectors like the automotive, data center and infrastructure, aerospace and defense, and smart mobile industries. More than 60 percent of the market relies on the types of chips that GlobalFoundries makes.

The company’s existing Fab 8 facility in Malta is a national leader in advanced manufacturing, producing 400,000 wafers each year. To date, the company has invested more than $15 billion in Fab 8 region and currently employs 2,500 employees in the Capital Region.

An economic impact study by Regional Economic Models, Inc. estimates that the GlobalFoundries project will generate positive economic growth for the Capital Region and New York State. Over the course of 20 years of operations, REMI estimates that the project will:

  • Create 1,508 jobs directly with the company and thousands of indirect jobs by 2032.

  • Grow New York State's economy, generating an additional $1.7 billion in real (inflation adjusted) economic output, on average per year and $1.1 billion in real Gross Domestic Product (GDP) on average.

  • Provide an estimated annual average of $630 million in real disposable personal income to New York residents.

  • Generate an average annual increase of $50 million in state government revenue, totaling $1.05 billion over 21 years, and an average annual increase of $63 million in revenue to local governments, totaling $1.3 billion over the same timeframe.

Construction on the new facility is expected to begin in 2025 and will be pursuant to a project labor agreement with workers who will be paid federal prevailing wage rates, at a minimum.

This project is being supported with $575 million in performance-based Green CHIPS tax credits in exchange for creating 1,508 direct jobs, and completing its multi-billion-dollar investments. Additionally, the company must also meet its community benefits and sustainability requirements. GlobalFoundries will also receive a $30 million infrastructure investment from the State The New York Power Authority—which currently provides GlobalFoundries with 15 megawatts of low-cost power from the ReCharge NY program—will consider further support for this expansion project when its Board of Trustees meets in March.

GlobalFoundries will be required to make at least $60 million in workforce training and community investments and negotiate a plan with Empire State Development that includes academic research and development projects, workforce and talent development, onsite or adjacent childcare, K-12 STEM education programming, and curriculum scholarships and tuition reimbursement. The company will also work with ESD to set a target percentage of permanent hires from targeted census tracts and historically disadvantaged populations. Empire State Development will commit to up to $15 million in spending for workforce development activities related to the project.

Additionally, GlobalFoundries will work to ensure that 30 percent of the project's eligible construction spending and 20 percent of its eligible ongoing annual operating spending is awarded to companies owned by individuals from traditionally underrepresented communities, with priority given to New York State Certified Minority- and Women-Owned Business Enterprises and Service-Disabled Veteran Owned Businesses. GlobalFoundries will also encourage construction contractors and subcontractors to identify candidates for hiring from disadvantaged and underrepresented populations.

To qualify for New York's Green CHIPS program, ESD and GlobalFoundries will enter into a Green CHIPS Sustainability Plan, which includes utilizing 100 percent renewable energy for electricity with potential onsite solar energy infrastructure and onsite battery storage systems. Additionally, the fabs and associated office buildings will be constructed to a minimum LEED Gold status. GlobalFoundries will also make investments in alternative and public transportation infrastructure, implement water reclamation and recycling measures, and adopt waste-reduction measures.

Governor Hochul’s Commitment to Growing New York’s Semiconductor Industry

Governor Hochul has maintained a strong commitment to building a modern economy in New York State through by growing a dynamic and innovative semiconductor industry. In 2022, the Governor signed New York’s historic Green CHIPS legislation to make New York a hub for semiconductor manufacturing, creating 21st century jobs and kick-starting economic growth while maintaining important environmental protections. As part of the FY 2024 Budget, Governor Hochul secured a $45 million investment to create the Governor’s Office of Semiconductor Expansion, Management, and Integration (GO-SEMI), which leads statewide efforts to develop the chipmaking sector. The Governor also announced a $10 billion partnership to bring the future of advanced semiconductor research to New York’s Capital region by creating the nation’s first and only publicly owned High NA EUV Lithography Center at the Albany Nanotech Complex.

GlobalFoundries’ investment adds to New York's already robust semiconductor industry which is currently home to 156 semiconductor and supply chain companies that employ over 34,000 New Yorkers. Thanks to Governor Hochul’s efforts, the industry is continuing to expand with major investments from semiconductor businesses and supply chain companies like Micron, AMD, Edwards Vacuum, and TTM Technologies to expand their presence in New York.

Semiconductors are vital to the nation's economic strength, serving as the brains of modern electronics, and enabling technologies critical to U.S. economic growth, national security, and global competitiveness. The industry directly employs over 300,000 people in the U.S. and supports more than 1.8 million additional domestic jobs. Semiconductors are a top five U.S. export, and the industry is the number one contributor to labor productivity, supporting improvements to the effectiveness and efficiency of virtually every economic sector — from farming to manufacturing.

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