Chipmaker eyes land for expansion

Globalfoundries purchase would allow Fab 8 campus growth

As the federal government is pushing a $25 billion plan to build up the domestic computer chip industry to withstand an increasingly powerful Asian supply chain, Globalfoundries is preparing for a potential future expansion at its Fab 8 manufacturing campus in Malta that could help the cause.

Globalfoundries announced Monday that it was exercising an option to purchase 66 acres along the main road entrance into Fab 8 from the New York State Energy Research and Development Authority, known as NYSERDA. The purchase price would be set by an independent appraiser. The town values a large 260-acre site owned by NYSERDA that is already developed at $14 million. The proposed parcel Globalfoundries would acquire is much smaller and undeveloped.

“Amid growing consensus in our nation’s capital for investment in semiconductor manufacturing, it’s more important than ever that we are ready to fast track our growth plans at Globalfoundries’ most advanced manufacturing facility in the U.S.,” said Ron Sampson, general manager of Globalfoundries’ U.S. operations. “With this agreement option, we now have additional flexibility to expand our footprint and position Fab 8 for future growth in Saratoga County and New York state, while strengthening U.S. leadership in semiconductor manufacturing.”

Globalfoundries has been pushing to get “trusted foundry” status from the federal government for Fab 8 that would allow it to make sensitive chips for military clients. The company’s Fab 9 factory in Vermont and its Fab 10 factory in Dutchess County already have that status.

Globalfoundries has its headquarters in Silicon Valley although the operation is ultimately owned by the government of Abu Dhabi, a U.S. government ally.

Globalfoundries has been working hard to achieve trusted foundry status for Fab 8. That would bring in more revenue for the factory, which employs 3,000 people and has cost $13 billion to build and expand over the past decade.

Globalfoundries’ Fab 9 and Fab 10 used to be owned by IBM, which had previously received trusted foundry status for the two facilities. Globalfoundries is a so-called foundry factory that makes chips for other companies. The arrangement is

beneficial since the client doesn’t need to operate an expensive factory, while Globalfoundries can benefit from dozens of clients keeping its factories busy around the clock.

Last week, Globalfoundries announced it had signed a memorandum of understanding with a Minnesota company called Skywater Technology, which operates a trusted foundry, to help the company make specialty chips for the Department of Defense.

“Globalfoundries’ support of defense programs is long and distinguished and we’re excited to begin a new chapter of cooperation to enhance our support for this important community,” said Brad Ferguson, chief technology officer at Skywater Technology. “This MOU shows proactive industry cooperation that can complement developing government policy focused on restoring American leadership for semiconductor manufacturing.”

Last month, Globalfoundries also announced it is implementing new export security controls at Fab 8 that will bring the facility into compliance with U.S. international traffic in arms regulations standards and the export administration regulations, which the Defense Department will appreciate as it seeks trusted foundry status.