GlobalFoundries to break ground on major Malta expansion backed by $21 billion investment

GlobalFoundries to break ground on major Malta expansion backed by $21 billion investment By Benny Nezaj WNYT GlobalFoundries to break ground on expansion MALTA, N.Y. (WNYT) — A major semiconductor investment is moving forward in Saratoga County as GlobalFoundries broke ground Friday on a new chip manufacturing facility at its Malta campus, marking another significant step in the Capital Region’s growing advanced manufacturing industry. Related: GlobalFoundries gets $21B in funding to build two chip fabs The project is part of a U.S.-Japan investment initiative that could provide up to $21 billion to support the construction of two new semiconductor fabrication facilities at the Luther Forest Technology Campus. Japan is expected to provide approximately $10 billion for the first new facility, which GlobalFoundries anticipates will begin operations in 2029. An additional investment of approximately $10 billion could fund a second facility, with a decision on that phase expected before the end of 2028. The expansion is expected to create approximately 27,000 construction and related ecosystem jobs, along with more than 1,000 high-skilled manufacturing jobs in the Capital Region. Todd Shimkus, president of the Saratoga County Chamber of Commerce, said the groundbreaking represents an important milestone for a long-term vision to establish the region as a major semiconductor manufacturing hub. “When you think back to the creation of the Luther Forest Technology Campus and the whole idea of attracting semiconductor manufacturing to our community, the original goal and intent was to have three fabs on that property, and we’re about to get our second,” Shimkus said. “So it’s headed in the right direction, and it’s super good for the economy and great for this community.” Shimkus said the investment could benefit businesses throughout Saratoga County, extending well beyond the semiconductor industry. Construction activity is expected to bring hundreds, potentially thousands, of specialized workers into the area over the next several years. Those workers are expected to support local hotels, restaurants, retailers, contractors and other businesses. “That means more people working and that means more income coming into the county, which where people live is where they spend their money,” Shimkus said. “So the more people we can attract to Saratoga and continue to grow our population, the better off our locally owned businesses are going to do as well.” The expansion also comes as other major investments move forward in the region. Shimkus pointed to Regeneron’s separate $2 billion project as another example of growing confidence in Saratoga County and the Capital Region as destinations for advanced manufacturing. However, that growth could bring additional pressure on housing and infrastructure. Shimkus identified housing affordability as one of the biggest challenges facing the county, noting that the median home sale price has surpassed $500,000 for the first time. While the county has added approximately 900 housing units, most have been apartments. Shimkus said additional housing, particularly affordable starter homes, will be important to attracting younger workers and families. Workforce development will also play an important role in supporting the region’s manufacturing growth. Hudson Valley Community College, SUNY Adirondack and SUNY Schenectady are among the institutions helping prepare students and adults for careers in advanced manufacturing. The new facility will also require significant investment beyond its physical construction. Specialized equipment must be installed inside the building before semiconductor manufacturing can begin. GlobalFoundries says the first new facility is expected to add approximately 900,000 300-millimeter wafers of annual manufacturing capacity once fully operational. A second facility could add a similar amount. The expansion builds on the region’s existing semiconductor industry, which has already brought billions of dollars in investment and thousands of jobs to Saratoga County. Shimkus said the area’s previous growth has exceeded expectations dating back to the original announcement of semiconductor manufacturing plans in 2008. At that time, projections called for approximately 1,200 jobs and $5.2 billion in investment. GlobalFoundries has since invested more than $15 billion and created approximately 2,500 jobs at its existing operations. As construction moves forward, Shimkus said he remains optimistic about the region’s economic future and the opportunities the latest investment could bring to local communities.