GlobalFoundries To Build Second Fab In Malta
The Malta-based semiconductor manufacturer GlobalFoundries announced this morning it will move to meet the global demand for computer chips by building a second chip plant in Saratoga County.
“Today we’re announcing, here and now, that we’re constructing another fab here in Malta, New York.”
With around 3,000 personnel in Malta, GlobalFoundries is one of the region’s largest employers. And with plans to build a second fab, more jobs will come, according to company CEO Tom Caulfield.
“This new fab will require investments in the billions, and will not just support U.S. manufacturing, but also will add approximately 1,000 new jobs directly by GF, and thousands of jobs indirectly – including construction and infrastructure jobs.”
An additional $1 billion dollar investment will build out capacity of the existing Fab 8 plant.
Senate Majority Leader Chuck Schumer called it a fabulous day for the Capital Region. The Democrat highlighted $52 billion in proposed federal incentives for semiconductor manufacturing, part of a bill that has already cleared the upper chamber.
“Part of the investment is $2 billion for legacy chip production, exactly like the chips made here at GlobalFoundries, what brought us here today, and so many industries – someone from Ford is here – so many industries depend on those chips, so that’s a great thing,” said Schumer. “Now, I’m working hard with the House to pass this into law and turbocharge the domestic semiconductor industry, including here at GlobalFoundries and across upstate.”
Upon passage of the semiconductor bill that has the support of President Joe Biden, U.S. Commerce Secretary Gina Raimondo said the federal government would work with industry to get the “most” out of the $52 billion, which she called an once in a generation investment.
“So we’re going to work in collaboration with industry, with private sector partners, with university partners, with the government, to make sure we get this right. And by the way, we all know $52 billion isn’t nearly enough. That’s the tip of the spear. We hope to invest that money in a way that it unlocks another $100 or $200 [billion] from the private sector.”
Caulfield said although almost half of global semiconductor demand is generated by U.S. headquartered companies, only 12 percent is manufactured domestically. He said the company will be pursuing an economic model based on “deeper partnerships,” adding the industry will not move forward unless all areas of the supply chain are addressed.
“The challenge is to create the new economic model, the partnership model that enables our industry to double its size in the next eight years, to grow to a trillion dollars. That’s our call: the call for this industry to create the semiconductors that the world needs,” said Caulfield.
GlobalFoundries moved its headquarters from Silicon Valley to Malta in April.
During a Q and A with reporters, Caulfield was asked about rumors that Intel was planning to purchase GF for $30 billion, first reported in the Wall Street Journal.
“I didn’t see this coming,” joked Caulfield. “Look, we commented last week. It hasn’t changed. There’s nothing to that story. What’s important is what the story is today. This idea of rebranding the company was about us as a team to be committed, to be bold, to make the kinds of investments, to create the technology for society. So we gotta get that news behind and make this the headline today.”
Caulfield said the new facility is still in the planning stages.