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Another part of the jigsaw to secure the future of AMD’s manufacturing arm under the temporary name of ‘The Foundry Company’ has been placed with the news that the State of New York has voted to approve the transfer of development incentives to the new foundry with respect to a planned 300mm fab (Fab-4X) to be built in the Luther Forrest Technology Park, in upstate New York. The range of incentives has been estimated at approximately US$1.2 billion.

“This incentive package developed by New York is a clear differentiator in keeping this region competitive in the global technology marketplace.  The support from the State of New York at all levels has been critical to the creation of The Foundry Company,” said Hector Ruiz chairman of AMD, who will become chairman of The Foundry Company. "The approval to transfer the incentives is an important step in our process to create the new global foundry company and a state-of-the-art manufacturing facility that is expected to bring thousands of new jobs to New York."

Construction on the US$4.6 billion 300mm fab is expected to begin mid-2009 following the close of the transaction between AMD and ATIC, the major shareholder in the new foundry business. Initially, when AMD had announced Fab-4X, the cost of the project was put at US$3.2 billion.

During the construction phase 1,600 construction jobs are estimated to be created, with the potential for an additional 2,700 jobs added through economic multiplier effects. The Foundry Company expects to directly employ 1200 people at the new fab with up to 5,000 jobs created indirectly.