A Fortune 500 company has pledged more than $700 million to expand its manufacturing operations in the Hudson Valley.
ON Semiconductor announced that it will expand operations in New York by purchasing and preserving the existing GLOBALFOUNDRIES Fab 10 manufacturing facility in East Fishkill. The company committed an investment of more than $720 million over 10 years to establish its first 300mm chip manufacturing plant.
"This is an exciting announcement for Dutchess County, and we are grateful to Empire State Development for brokering the expansion of ON Semiconductor, US-based, publicly traded Fortune 500 company, in New York State and Dutchess County," Dutchess County Executive Marc Molinaro said. "Dutchess County continues to be where innovation happens, and we are excited to welcome ON Semiconductor into our community and shepherd in the latest technological innovations for automotive electrification, 5G mobile networks, alternative energy and more.”
The new plant will “further fuel strategic growth for the company in the areas of power management including automotive electrification, 5G mobile networks, cloud computing and alternative energy,” New York Gov. Andrew Cuomo said.
"ON Semiconductor's decision to expand and grow its operations in New York State is proof positive that smart investments in our innovation economy are working and fueling New York's unprecedented growth," the governor said. "We're glad ON Semiconductor is choosing to deepen its roots here and its commitment to New York State.”
As part of their transition agreement, Empire State Development has agreed to provide upwards of $17.5 million in grants toward the purchase of the Fab 10 property. They also agreed to $22.5 million in Excelsior Jobs Program tax credits related to its investment over the next decade.
"This agreement with ON Semiconductor continues to advance the high-tech industry in the Hudson Valley," Lt. Gov. Kathy Hochul added."The company's investment will further advance chip manufacturing in New York State and add over 100 jobs and retain nearly 1,000 in Dutchess County. We are committed to ensuring the continued growth of the industry and strengthening the economy of New York State.”
Cuomo’s office said that GLOBALFOUNDRIES and ON Semiconductor will “enter into a foundry supply arrangement whereby GLOBALFOUNDRIES will manufacture ON Semiconductor-specific chips at Fab 10 from mid-2019 through 2022 as ON Semiconductor increases staff and equipment installations each year.”
"GLOBALFOUNDRIES and Empire State Development have built a strong partnership in the more than 10 years that we have worked together to develop and grow semiconductor jobs and manufacturing in the state," GLOBALFOUNDRIES CEO Tom Caulfield said in a statement. "We see this transaction as a real win for all parties. For New York State it helps to retain talent and manufacturing jobs for decades to come, for ON Semiconductor they establish their first 300mm facility and a win for GLOBALFOUNDRIES because it frees up resources to allow us to further invest in our Fab 8 Malta facility while preserving our talented workforce in East Fishkill."
Click here to sign up for Daily Voice's free daily emails and news alerts.