Posted on : Wednesday 17th June 2020 04:03 PM
An Arizona-based semiconductor supplier will purchase GlobalFoundries' computer chip manufacturing plant in the Hudson Valley, creating 150 new jobs and preserving hundreds of others as part of a $720 million expansion plan, Gov. Andrew Cuomo announced Monday.
The Democrat said in a statement that Phoenix-based ON Semiconductor will found its first 300mm chip manufacturing plant at GlobalFoundries' Fab 10 facility in East Fishkill, 60 miles (96 kilometers) north of New York City.
ON Semiconductor has determined to creating 150 new jobs in East Fishkill and keeping a minimum of 950 existing jobs at the facility, Cuomo said. "We're glad ON Semiconductor is choosing to deepen its roots here and its commitment to New York State," he said. The deal calls for GlobalFoundries to change manufacturing from Fab 10 to their other facilities, including Fab 8 in Malta, New York, 100 miles (161 kilometers) north of East Fishkill.
The state has offered ON Semiconductor up to $17.5 million in awards toward the purchase of the Fab 10 property, and another $22.5 million in tax credits over 10 years if the company meets its job creation and investment commitments.
"The increased level of capability and capacity enabled by this expansion is our answer to meet critical market needs," Keith Jackson, president and CEO of ON Semiconductor, remarked in a statement.
After a three year transitional period, ON Semiconductor will obtain ownership of the East Fishkill facility, of which GlobalFoundries attained from IBM in a $1.5 billion deal announced in 2014. Under terms of the deal announced Monday, ON Semiconductor will pay $100 million at the agreement signing with GlobalFoundries and $330 million at the end of 2022.
Last summer, GlobalFoundries stated it was ridding of about 400 jobs at its Fab 8 plant in Malta as it restructured operations and moved away from cutting-edge chip technology. GlobalFoundries is owned by the government-backed Mubadala Development Company in Abu Dhabi, United Arab Emirates.
The high-tech industry deal was the second biggest economic develop win announced by the Cuomo administration over the past four days. On Thursday, the third-term governor stated that Netflix was broadening its corporate offices in Manhattan and building six sound stages in Brooklyn, where thousands of production jobs will be located.
That announcement came two months after Amazon backed out of a deal that potentially could have brought more than 25,000 new jobs to Queens. The internet retailer ditched New York on Valentine's Day, stating rigid backlash from some local politicians opposed to the $3 billion in city and state tax breaks offered to Amazon.
This article is originally posted on manufacturing.net