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GlobalFoundries Executive Addresses Layoffs

The logo of GlobalFoundries
Lucas Willard
/
WAMC

Computer chip manufacturer GlobalFoundries invited members of the public in for an open house this week. While the community got a taste of what goes on at the Saratoga County Fab 8 site, local reporters had a chance to meet with company leadership.

Dr. Thomas Caulfield, Senior Vice President and General Manager of the GlobalFoundries Fab 8 site, answered questions about the company’s growth and investments. He also addressed a round of voluntary buyouts and layoffs that have grabbed headlines recently.

It was revealed last month that the company had laid off about 150 workers at its facility in Saratoga County and the former IBM facility in East Fishkill, though the company would not specify how many jobs were lost at each location.

Caulfield explained that changes in the technology market have affected the company that produces technology for smartphones and other devices.

“Sometimes you find yourself in a situation where you have high customer concentration, meaning you don’t have diversity in your customers, and you have an over-dependency on one-another. And if one of your clients has a disproportionate amount of business difficulty, and their business can be cyclical too, the competitive landscape changes, it can impact guys like us and it has.”

Since January 1st, GlobalFoundries has had a net gain of 500 jobs in Malta.

Caulfield described the layoffs as “trimming and optimization” but did not downplay the impact on those affected.

He said some hiring in areas where the company may need key skills is possible. The upcoming year will be focused on growing the business now that the infrastructure in Malta is put in place. 

“But ’16 is a year for Fab 8 to take what we’ve invested over the last  x-number of years since a shovel came in the ground here, and execute the capacity put in place to service our customers and grow our business, and get through ’16 , get that business, get those products in for our customers, and use that to start to grow our capacity again.”

Caulfield said the key for the future is client diversity, which is why the move to acquire IBM’s semiconductor manufacturing operations is important, as it allows GlobalFoundires to offer different kinds of technology.

The company announced this week that by acquiring IBM’s Microelectronics Division, GlobalFoundries is able to produce industry-leading 14 nano-meter technology from the Fab 8 site.

The company also announced a deal with AMD that will incorporate 14 nm into AMD’s products.

During his presentation, Caulfield announced that a deal to purchase 135 additional acres from the Luther Forest Technology Campus for potential expansion is being finalized. Although there are no plans yet to build a second Fab, Caulfield said the extra acreage will allow for any future development.

“If and when this company decided to do its next Fab at leading edge, the opportunity to do it here is the highest because you leverage your economic scale, your footprint. So you start planning for that potential early on because it takes years to get ready for that. The first step for doing that potential is first to secure the land.”

Caulfield said that growth in Saratoga County would not put a drain on the former IBM facility in East Fishkill. He reiterated that diversification is key to keeping operations afloat throughout the Northeast.

“There’s plenty of other ways to differentiate yourself in semiconductor space to provide value to your customers, make money, and be relevant.”

GlobalFoundries also operates the former IBM plant near Burlington, Vermont. Last week the company announced $55 million in new investments in that facility.

Lucas Willard is a reporter and host at WAMC Northeast Public Radio, which he joined in 2011.
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