We have witnessed the launch of what New York State politicians hope to become a major job creator in the region and the world's leading chip foundry. Everybody who cares about AMD’s future has to have high hopes about this fab.
The groundbreaking was more of a New York State political rally than anything else and all of these politicians had to get on stage to justify the $1.2 billion that the State is going to contribute in order to get the Foundies Fab 2 in Malta New York, Saratoga country.
Since AMD is headquartered in Austin, Texas it was more logical that they should open a Fab there, but it turned out that they managed to get enough benefits and financial injections from New York State. New York City is still blooming, but the same can't be said of upper state New York where Globalfoundies' Fab 2 should launch in some 24 to 36 months, depending how you count.
The county of Saratoga, New York state expects 1,400 direct jobs when Fab 2 opens, but a 4300 workers will work for the next 24 months during the construction of this facility and when it opens Fab 2 should bring some 5,000 more utility jobs. This is why New York gave AMD and ATIC, United Arab Emirates based investors so much money.
This $1.2 billion package is the biggest state investment in a private company in the history of US, and even Obama was supposed to show up, but since he is busy working on the health plan and his image, he kind of skipped this small political rally. Vice President Biden showed up a bit earlier and praised Globalfoundries' Fab 2 plans.
The car industry in that region is pretty much gone and state hopes to boost the region with jobs from this Fab. The only downside is that it will have to wait as only the construction jobs will really take off in the next 24 months while the rest of the 1400 + 5000 utility jobs will happen after the fab is finished, hopefully latest by October-November 2011.
Until the Fab 2 starts manufacturing some chips which should happen by mid 2012, AMD can only rely on its Dresden Fab, something that is tangible and up and running.