GLOBALFOUNDRIES today announced it has issued the formal commitment letter to the State of New York for the construction of the Fab 2 project at the Luther Forest Technology Campus (LFTC). The letter officially initiates the construction phase of the Fab 2 project and triggers the State of New York to begin the process of issuing bonds for the payment of reimbursements and incentives to the company for the development of the estimated $4.2 billion semiconductor wafer fabrication facility, or "fab."

"It was three years ago this month that we announced plans to build and operate the most advanced semiconductor manufacturing facility in the world in upstate New York," said Hector Ruiz, chairman, GLOBALFOUNDRIES. "Over the course of that time we have worked hard to develop this project while reinventing our overall business strategy and ultimately launching GLOBALFOUNDRIES as a new company. Along the way we have had tremendous support from the people of New York and it is with great pleasure that today we announce our official commitment and the start of the construction phase of this exciting project."

In preparation for officially breaking ground in July, GLOBALFOUNDRIES also announced today it has:

• Completed the Development Agreement with the Town of Malta and the Town of Stillwater. Through the Development Agreement the company will contribute $5 million, including $1 million towards the creation of a 32-acre public recreation field complex. The remaining $4 million will be used to establish two independent foundations designed to provide dedicated funding for future community enrichment programs in each town.
• Authorized M+W Zander to award the site development bid. The site development work, also referred to as "clearing and grubbing," will begin on Monday, June 15 and will prepare the site for full-scale construction, including the official groundbreaking ceremony planned for July.
• Scheduled the closing of the transaction to purchase 223 acres of land from LFTC for Wednesday, June 10.

"New York is in position to lead the nation in the New Economy. This project represents exactly the type of innovation and cutting-edge technology that will give our state a critical advantage moving forward. It is also the largest public-private sector industrial investment in New York State history, with thousands of new jobs and billions of dollars in capital expenditures, which will have an incredible impact," said Governor David Paterson. "I want to thank Hector Ruiz and his team at GLOBALFOUNDRIES for their commitment to this important project and their commitment to New Yorkers."

The construction project is expected to take approximately two years to complete and an additional 12 to 18 months to ramp to full operating mode, with volume production anticipated in roughly 2012. The Fab 2 project is expected to create approximately 1,400 new direct semiconductor manufacturing jobs at full scale production with an estimated annual payroll of more than $88 million. In addition, the project is expected to create approximately 5,000 new indirect jobs in the region with a sustained estimated total annual payroll of $290 million per year for all jobs.

The total capital budget for this project is estimated at approximately $4.2 billion, including local construction expenditures of approximately $800 million. Construction is expected to create approximately 1,600 new construction jobs, plus an additional 2,700 local construction-related jobs.