Governor Kathy Hochul on Jan 17th, announced that GlobalFoundries (GF), a leading manufacturer of semiconductors located in Saratoga County, will invest $575 million to create a new center for advanced packaging and testing, and an additional $186 million for R&D over the next 10 plus years within its Malta manufacturing facility. The New York Advanced Packaging and Photonics Center will expand GlobalFoundries’ advanced packaging capabilities — which is a critical part of the design and manufacture of chips. These efforts are expected to create 102 new full-time jobs in the Capital Region over the next five years.

“GlobalFoundries is a proven economic generator that shows just exactly how this industry can transform a region,” Governor Hochul said. “Their continued growth and success are a boon to both the Capital Region and the state, and attracts residents and businesses alike. GlobalFoundries expansion into advanced packaging for photonics and other applications is good news for New York and I thank the Biden administration, Senator Schumer and our congressional delegation for ensuring we remain competitive in the 21st century economy.”

GlobalFoundaries President and CEO Dr. Thomas Caulfield said, “We’re proud to partner at the state and federal level on this new center, which is a direct response to our customers asking for more geodiversity in their supply chains and additional support with advanced packaging solutions for GF silicon photonics, Trusted and 3D/HI offerings. The New York Advanced Packaging and Photonics Center will be unique in our industry and will play a vital role in the continued growth of the Empire State’s world-class semiconductor manufacturing and innovation ecosystem.”

The company’s existing Fab 8 facility in Malta is a national leader in advanced manufacturing, producing 400,000 wafers each year. To date, the company has invested more than $15 billion in Fab 8 and currently employs 2,500 workers in the Capital Region.

The New York Advanced Packaging and Photonics Center builds on GlobalFoundries' existing plans to expand their fab in Malta. New York State will provide up to $20 million in support for the new center, which is in addition to the previously announced $550 million in support for GlobalFoundries from the performance-based Green CHIPS program. The U.S. Department of Commerce will provide up to $75 million in direct funding to support the center, supplementing the company’s previously finalized CHIPS Act award.

Empire State Development President, CEO and Commissioner Hope Knight said, “Under Governor Hochul’s leadership and investments, New York State is driving America’s semiconductor industry resurgence. GlobalFoundries decision to invest, grow, and create even more jobs in the Capital Region represents the success of the state’s strategy, and that innovation is truly at the heart of New York.”

Senate Minority Leader Charles Schumer said, “Thanks to my bipartisan CHIPS & Science Law, GlobalFoundries now plans to build a first-of-its-kind advanced chip packaging and testing center right here in the Capital Region, further powering Upstate NY to lead the nation’s semiconductor manufacturing comeback. I’m proud to deliver this additional $75 million, on top of the $1.5 billion in CHIPS funding that I secured last year, to help the Capital Region and broader Upstate NY’s chips ecosystem grow bigger than we ever thought before. This new facility in the Capital Region will ensure semiconductors can be securely manufactured, packaged, and tested entirely in the United States, a vital need for our auto, defense, and tech industries like AI. That means new, good-paying jobs here at GlobalFoundries’ Malta facility, decreased reliance on foreign-made chips, and stronger national & economic security for America. When I wrote the bipartisan CHIPS & Science Law, I made sure there was funding especially for the essential type of chips that GlobalFoundries produces in Malta and that continues to pay dividends as we see this new growth. GlobalFoundries’ expansion in New York is also made possible with the partnership of Governor Hochul, who I thank for her steadfast support and leadership in bringing this industry back to our shores. Today we take another step forward to making the heart of America’s chip industry right here in the Capital Region and Upstate NY.”

GlobalFoundries’ New York fab has Trusted Foundry accreditation and manufactures secure chips in partnership with the U.S. government.

To date, most domestic investment in advanced packaging has occurred in Arizona and Texas. Landing a significant advanced packaging hub in Malta will drive an impactful new series of opportunities for the Capital Region, and New York overall, to continue the growth of a globally competitive semiconductor industry cluster.

Governor Hochul’s Commitment To Growing New York’s Semiconductor Industry

Governor Hochul has maintained a strong commitment to building a modern economy in New York State by growing a dynamic and innovative semiconductor industry. In 2022, the Governor signed New York’s historic Green CHIPS legislation to make New York a hub for semiconductor manufacturing, creating 21st century jobs and kick-starting economic growth while maintaining important environmental protections. As part of the FY24 Enacted Budget, Governor Hochul secured a $45 million investment to create the Governor’s Office of Semiconductor Expansion, Management, and Integration (GO-SEMI), which leads statewide efforts to develop the chipmaking sector. In December 2023, Governor Hochul announced a $10 billion public-private partnership — including $9 billion in private investment from IBM, Micron, Applied Materials, Tokyo Electron and other semiconductor leaders — to bring the future of advanced semiconductor research to New York’s Capital region by creating the nation’s first and only industry accessible, High NA EUV Lithography Center at the Albany NanoTech Complex which has been recently awarded $825 million in federal funding and was designated the CHIPS for America EUV Accelerator under the CHIPS and Science Act.

New York is home to a robust semiconductor industry which supports more than 156 semiconductor and supply chain companies that employ over 34,000 New Yorkers. Thanks to Governor Hochul’s efforts, the industry is continuing to grow with major investments from semiconductor businesses and supply chain companies like Micron, GlobalFoundries, AMD, Edwards Vacuum, MenloMicro and TTM Technologies to expand their presence in New York. In fact, in the last two years, chip companies have announced over $112 billion in planned capital investments in New York — more than any other state — and one in four U.S. made chips will be produced within 350 miles of Upstate New York. No other region in the country will account for a greater share of domestic production.

Semiconductors are vital to the nation's economic strength, serving as the brains of modern electronics, and enabling technologies critical to U.S. economic growth, national security, and global competitiveness. The industry directly employs over 300,000 people in the U.S. and supports more than 1.8 million additional domestic jobs. Semiconductors are a top five U.S. export, and the industry is the number one contributor to labor productivity, supporting improvements to the effectiveness and efficiency of virtually every economic sector — from farming to manufacturing.