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AMD to build chip plant in New York with state's help

Semiconductor maker Advanced Micro Devices (AMD) Inc, which was offered about US$1 billion in state incentives, will build a multibillion dollar chip manufacturing plant in upstate New York, creating 2,000 permanent jobs, state and company officials said on Friday.

AMD, based in Sunnyvale, California, chose to locate the new plant on a 240-hectare site in Malta, north of Albany, after considering bids from East Asia and Germany, state officials said.

"The Hudson Valley is going to be America's next Silicon Valley and we're well on our way to achieving that," Governor George Pataki said.

Pataki said the state and company would invest US$3.2 billion initially and up to US$5 billion over the next couple of years.

The state is providing about US$1 billion in incentives including grants for construction and equipment, tax credits and other benefits, according to a legislative aide familiar with the deal.

State incentives offered to the company would still need legislative approval.

In addition to the permanent jobs, building the chip-making plant would create about 2,000 construction jobs for up to two years and help add another 3,000 jobs to companies created to support plant operations, Ken Green, president of the Saratoga Economic Development Corp, said earlier this week.

Worldwide chip sales are expected to total US$249.6 billion this year, a 10 percent increase from last year, according to the Semiconductor Industry Association.

AMD is Intel Corp's biggest rival in the market for the microprocessors that act as the brains of personal computers.
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