AMD, N.Y. Ink Fab Grant Disbursement Agreement

By Ann Steffora Mutschler -- Electronic News, 12/26/2006

Sunnyvale, Calif.-based microprocessor provider Advanced Micro Devices (AMD) inked a Grant Disbursement Agreement with the state of New York on Friday.

The agreement establishes a two-year window from July 2007 to July 2009 in which AMD can choose to initiate the building of a new 300mm wafer fabrication facility in Saratoga County, N.Y.

Execution of the agreement comes after New York’s Public Authorities Control Board (PACB) voted last week to approve a $650-million-grant to the company, AMD said.

The company has said it anticipates the need for a new facility and has selected the Luther Forest Technology Campus as an ideal site.

"Timing of the final decision depends on a number of factors, including future market demand, with a growing customer base, leading technology and the hope for a truly fair and open competitive playing field, AMD remains optimistic about prospects for continued momentum in the years ahead," the company said in a statement.

If conditions become right for AMD to move forward, construction would begin sometime between July 2007 and July 2009, with construction of the building expected to take about a year with another year needed for the installation of equipment and tools.

The project has the potential to directly create approximately 1,200 new jobs, along with thousands of indirect jobs through supporting construction and infrastructure projects, AMD reminded.