AMD tries to hand New York fab tax breaks to spin-off
A NEW SUBSIDIARY of AMD has asked the Saratoga County Industrial Development Agency (IDA) for $27.8 million in sales tax exemptions. The deal would supplement the $1.2 billion AMD has already negotiated for itself in state incentives for the firm’s planned $4.66 billion chip fab in the area.
If the IDA agrees, AMD’s newly-formed subsidiary, AMD Fab Technologies US, would save itself a packet on building materials sales tax. Building, land and equipment don’t come cheap, and the firm expects it will have to find and shell out somewhere in the region of $807 million as well as a further $3.85 billion for utilities, road construction and other costly infrastructure.
Earlier this month, AMD confirmed its commitment to building the plant, which it had been mulling since 2006. The fab, which falls awkwardly between the Ballston Spa and Stillwater school districts in New York State, would employ 1465 souls and have an annual payroll of about $88 million, or about $60,000 per job when it gets up and running in about 2012.
But AMD, which split into a chip design firm and a separate manufacturing company earlier this month, will not be the owner of the Saratoga Fab, The Foundry Company will. The Foundry Co., 55 per cent of which is owned by an Abu Dhabi government investment firm, will also take over AMD’s two Dresden chip fabs.
Interestingly, the new AMD manufacturing spinoff will be incorporated in the Cayman Islands, situated in the western Caribbean, which, surprise, surprise, have no corporate income tax. AMD Fab Technologies is apparently the name for the firm’s U.S. based subsidiary, and one which also seems adverse to paying too many taxes if it can help it.
The deal with the IDA could involve some sort of payment-in-lieu-of-taxes system, which would also deal with a thorny issue posed by the plant’s land falling under both Malta and Stillwater jurisdiction. The deal would split property tax revenue so that 75 per cent would go to the Ballston Spa school district and 25 per cent to Stillwater.
If everything goes through the way AMD hopes, the firm should start clearing land by March and breaking ground by June of 2009. Construction of the almost 93,000 square metre fab is predicted to take up to two years. µ
L’Inq
Albany
Business Review
See also
Ruiz
meets Albany politicos to talk trash and fabs
AMD
gets the go ahead for sewage facility
Share this:
ShareBusiness Intelligence Software
Customer Relationship Management (CRM)
Enterprise Accounting Software
Enterprise Resource Planning (ERP)
Enterprise Systems Management
So after 1.2 Bil in subsidies plus a couple hundred mil in upgrades to existing infrastructure AMD has their hand out again?!?!?

This is like a CEO asking for a per diem to cover food and incidentals, and maybe even a company car...

The sad thing is, they will probably get it... In the end NY will create 1200-1500 jobs at a cost nearing 1.5Bil. This puts it at about $1Mil/job created.
Some time ago, I was hoping AMD would hurry up and build the New York fab.

Today, I'd advise New York should tell this newly spawned company to go to hell.
Now that the site will no longer be used by AMD, as far as I am concerned the deal with NY state should be off, and the Fab Company should be prepared to pay its way. With all the oil money behind this venture, it is absolutely rediculous for them to be getting ANY public monies for this venture.

As a resident of the area, I say: F**k you, AMD, and the horse you rode in on!

Oh, and a hugs and kisses to all our a**hole politicians and bureaucrats for bending over once more. Problem is, the citizens are the ones who get f**ked.
Yes, with a $47billion budget whole and staring down massive cuts in government services, NY state will really be inclined to give further tax breaks. What a time to make such a request >_<
Building a fab in NY state is far too expensive and was never a good idea to begin with. It certainly was never going to happen if AMD was keeping its wafer mfg under its own name and nickel. This is why it is taking so long for any firm decisions to be revealed regarding the plans, and they are only really starting to consider doing anything with it now that a spinoff and oil money will be responsible for paying for it. As for the disgruntled NY staters, I'm sure you have a right to be ticked off about the process thus far. But really, you need to be a lot more realistic about the costs and logistics of why someone would ever build a fab there. That's being terribly naive in my view.
dsafdsf
sdfdsf