Now that it’s a fixture in Saratoga County, GlobalFoundries is going to settle in a little more with promise of an expansion to its Malta factory.
The 90,000-square-foot expansion of Module 1 at the Fab 8 campus was announced on Tuesday, July 24, the third anniversary of the project’s original groundbreaking. The company said the module will be the final piece of the Fab 8 campus.
“Our investment in Fab 8 is helping to develop Tech Valley as a premier hub of the global semiconductor industry, creating thousands of new technology-based jobs, and contributing billions of dollars to the regional economy. We anticipate the extension will be a significant job creator for both direct and indirect jobs,” said Jessica Kerley, a spokeswoman for GlobalFoundries.
The expansion is expected to bring another 400 to 500 jobs to the Luther Forest Tech Park and will allow for Fab 8’s capacity to grow by approximately 60,000 wafers per month. According to a statement from GlobalFoundries, it will also “increase the (project’s) capital budget by approximately $2.3 billion, taking the total capital budget from $4.6 billion to approximately $6.9 billion, once tools and equipment are installed.”
Chamber of Southern Saratoga County President Peter Bardunias said the expansion will likely continue to attract top talent from around the county to work in the area.
“It will also embolden and encourage entrepreneurs to expand their own businesses and aggressively design, manufacture and market products useful to the new population of our region,” he said. “Our next generation of Saratogians will have top quality education and employment options among major companies such as GE, GlobalFoundries, Momentive and others.”
GlobalFoundries has contributed a total of $5 million to date to the Town of Malta and Town of Stillwater Foundations, in addition to tax payments.
The company said an increased demand for the silicon wafers Fab8 produces is driving the project. The GlobalFoundries site plans have always left the possibility of expansion, but no timetable was ever set.
“Today we see increasingly strong demand from our customers, especially at the 28nm node, and we are excited to be moving forward with this next phase in the development of the Fab 8 campus,” said Eric Choh, vice president and general manager of Fab 8, in a statement.
The news means more construction at the Luther Forest site, where there have been mixed feelings toward the massive, multi-year undertaking. Malta Supervisor Paul Sausville called GlobalFoundires a good and responsive partner, though.
“They’re truly a part of the community. I can call them with any questions…and they respond. …They’re raising the bar to make Malta competitive,” he said.
Sausville added that the “high benefit, low impact” of the campus has been transformational for the town’s tax base and job market.
“We’re seeing an impact already, we’ve had 21 businesses new or added to the workforce in Saratoga County,” said Sausville.
The ultimate goal for the town, according to Sausville, is that more workers will be living in the town and be able to bike to the forest instead of commuting from other areas.
Bardunias feels the timing of the foundry’s announcement is “just right,” citing the completion of roadway improvements on Routes 9 and 67, as well as new housing developments and a new Hannaford Supermarket at Exit 11to accommodate growth.
“The Saratoga County economy as a whole is improving and this (expansion) will only add fuel to the fire,” he said.
Kerley said that there are no plans for additional facilities on the Fab 8 campus at this time. The expansion is expected to start this month and be completed by the end of 2013.
