New York transfers $650M of incentives to AMD spinoff

New York's Empire State Development Co. and Public Authorities Control Board voted to approve plans to transfer US$650 million [M] worth of incentives to Advanced Micro Devices' manufacturing spinoff, The Foundry Co.

The funds, awarded to AMD in 2006, are earmarked for the construction of a 300-millimeter wafer fabrication plant in Saratoga County, New York. Construction on the plant must begin before July 2009, according to of the original grant.

In October, AMD signed a US$2.1 billion deal to spin off its manufacturing operations as The Foundry Co., backed by the Advanced Technology Investment Co. of Abu Dhabi and Mubadala Investment, an investment arm of the Abu Dhabi government.

From the outset, The Foundry Co. announced plans to push ahead with construction of the new plant in New York, as well as its expand existing plants in Dresden, Germany. The transfer of incentives by the New York government clears the way for that to happen and construction will begin next year, AMD said in an e-mail statement.

Construction of the 1.2 million square foot plant is expected to cost $4.6 billion and employ 1,400 workers when operating at full capacity.