LONDON – Globalfoundries Inc., the foundry that is majority owned by an Abu Dhabi sovereign wealth fund, has said that its newly constructed cleanroom in New York and a cleanroom extension in Dresden have both had the first chip making equipment installed.
At Fab 1 in Dresden, Germany, Globalfoundries is adding capacity to take the fab to 80,000 wafers per month and work at 45-nm and below.
Fab 8 is a new wafer fab campus under construction at the Luther Forest Technology Campus in Saratoga County, New York. The company said it moved into the Admin 1 office building and broke ground on the Admin 2 building last week. With the fab now ready for equipment Globalfoundries will begin populating about 300,000 square feet of cleanroom aiming for an eventual total output of approximately 60,000 wafers per month. Fab 8 is expected to begin running wafers in 2012 with volume production in 2013 using 28-nm manufacturing processes and below.
"By completing these massive construction projects on schedule and on budget, we are continuing to deliver on our commitment to being the only truly global foundry," said Aji Manocha, Globalfoundries interim CEO.
Let's face the reality. Labor cost could be a non -issue at the beginning if US-based foundry can be as productive as off-shore. But eventually labor cost will kick-in and the difference could be 20-30% higher down the road. This business model is not sustainable unless you have sugar daddy behind it and state of NY has decided not to provide financial incentives any more to this venture. Let's see whether Abu Dhabi will be exactly that.
I think the New York state government deserves a lot of credit for getting that fab built there. They have promised some pretty serious financial incentives. I think it's true that labor cost is essentially a non-issue, and it's more about availability of talent, real estate, and government incentives.
Yes, an encouraging trend. Since an IC fab has a large degree of automation, I would think that the local labor costs would be irrelevant. Unfortunately the location would be driven more by real estate prices and would tend to favor non-U.S. locations.
This should be an embarassment to U.S. based chip makers that have shut down their foundries in favor of foundries offshore.
I know that this was planned while AMD still owned their foundries but Abu Dabhi came through for American workers.
It's been a long time since we've seen the very short sighted U.S. Companies invested in American foundries and manufacturing.
Thank You Abu Dhabi for doing what American companies refuse to do.
God bless and may Allah be with you,
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