NY State Legislator: AMD to Build $3.5B Fab

Staff Reporter -- Electronic News, 6/20/2006

Advanced Micro Devices is in discussions to build a $3.5 billion fab in New York State, according to an Associated Press report.

New York Assembly Speaker Sheldon Silver on Tuesday said that AMD is considering two possible locations for the fab, one in a technology park 25 miles north of Albany and the other on an 800-acre site in the central New York town of Marcy, the report said.

An AMD spokesman said that the company has made no announcement about the location of its next fab, and said the company does not comment on rumors or speculation.

Legislative staff members said the state could provide more than $1 billion in incentives to AMD to locate the facility in New York, according to the report.  The deal could mean 2,000 permanent jobs in New York and the potential deal would include at least $500 million in state money for construction and equipment and $250 million in tax credits, the report said.

Last month, AMD said it would invest $2.5 billion to expand its production facilities in Dresden, Germany. The chipmaker has been eyeing capacity expansion as it seeks to gain market share.