Globalfoundries, a joint venture between Advanced Micro Devices and Advanced Technology Investment Company, has announced that it officially broke ground on the construction of Fab 2, a new semiconductor manufacturing facility located at the Luther Forest Technology Campus in Saratoga County, New York. The construction and ramp-up phases for the new $4.2 billion facility are expected to take approximately three years to complete, with volume production expected in 2012.

“As today’s chip designers push the boundaries on the next generation of products, there is a growing need for a new approach to design and manufacturing rooted in collaboration and innovation. With Fab 2, Globalfoundries moves the semiconductor industry away from the traditional model of isolated regional development and into an era of global hubs of manufacturing and technology expertise,” said Hector Ruiz, chairman of Globalfoundries.

Fab 2 is designed to manufacture microprocessors and logic products on 300mm wafers. Initial production is expected to ramp at the 28nm technology node and move to volume manufacturing on the 22nm node. 

The development of the Fab 2 facility is the latest step in the rejuvenation of an area which was once known as a national leader in manufacturing and innovation. Globalfoundries is already working with leading technology developers and academic institutions in upstate New York, including scientists and engineers in IBM’s Technology Alliance, on the research and development necessary for creating the next generation of semiconductors. The investment in Fab 2 is a major step toward positioning this burgeoning area as a driver of innovation, economic growth and investment in New York State and a recognized technology hub.

The fabrication plant will bring immediate economic growth and opportunity to upstate New York and will create approximately 1400 new, direct semiconductor manufacturing jobs at full scale production, providing an estimated annual payroll of more than $88 million. In addition, the project will create approximately 5000 new, indirect jobs in the region, offering a sustained estimated total annual payroll of $290 million for all jobs.

The construction project is expected to take approximately two years to complete and an additional 12 to 18 months to reach full operating mode, with volume production anticipated in 2012. The total capital budget for Fab 2 is estimated at approximately $4.2 billion, including local construction expenditures of approximately $800 million. Construction is expected to create approximately 1600 new construction jobs, plus an additional 2700 local construction-related jobs.

Tags: Globalfoundries, AMD, ATIC, TFC, Semiconductor, Business