SENATOR BRUNO ANNOUNCES ADVANCED MICRO DEVICES WILL BUILD NEXT MULTI-BILLION DOLLAR FACILITY AT LUTHER FOREST

Agreement calls for largest private investment in New York State History

Monday, June 26, 2006

Senate Majority Leader Joseph L. Bruno joined Dr. Hector Ruiz, Chairman and CEO of Advanced Micro Devices (NYSE: AMD), Governor George Pataki, Assembly Speaker Sheldon Silver and Congressman John Sweeney today to confirm that AMD has selected the Luther Forest Technology Park as the site of their next semiconductor manufacturing facility. This announcement is one of the largest private sector industrial investments in New York State history and is projected to create more than 1,200 new high-tech jobs, thousands of construction jobs, and more then 3,000 jobs through businesses that will serve AMD.

Under the terms of the agreement, AMD would be able to construct a new, $600 million, 1.2 million square foot facility, equipped with approximately $2.6 billion in state-of-the-art tools designed to produce 300 mm wafers using 32mm process technology. Expenditures at the facility are projected to total more than $2 billion during the first five years of operation, bringing the projected total investment to $5.2 billion. The Luther Forest site in Saratoga County was selected by AMD after an extensive review of a number of sites nationwide and internationally. The agreement enables construction on the 1.2 million square foot plant to begin between July 2007 and July 2009 and be fully operational sometime between January 2012 and January 2014.

"Upon becoming Majority Leader 11 years ago, I made clear that my top priorities would be to support economic development and job creation initiatives that would allow the Capital Region and New York State to be competitive in the global market place," Senator Bruno said. Today's announcement is a culmination of our efforts to ensure that New York State will not only be a player in the global economy, but a predominant leader in charting the course for economic development in the 21st Century. The AMD announcement is great for Saratoga County, the Capital Region and all of Upstate New York. It will mean billions in economic investment and the creation of thousands of jobs so our children and grandchildren can enjoy the career of their choice right here in New York State."

"AMD's ability to serve market demand for our industry-leading technology depends on an intelligent, flexible way to scale our manufacturing capacity," said Hector Ruiz, chairman of the board and chief executive officer of AMD. "With a growing customer base, and the hope for a truly fair and open competitive playing field, our prospects for continued momentum over the long term look strong. We were impressed by the number of locations, including Luther Forest and Marcy, that would make an excellent location for a semiconductor fabrication facility. We commend the State of New York on their tremendous commitment to this project and look forward to a prosperous collaboration moving forward."

"This is precisely what we had envisioned when I first announced our Center of Excellence initiative five years ago. This is an historic day for the Capital Region, for Upstate and for the entire State of New York, as this agreement sends a loud and clear message both nationally and internationally that the Empire State is in the forefront of the global high-tech economy," Governor Pataki said. "AMD is a worldwide industry leader and we're proud that they want to partner with us on this unprecedented investment bringing over 1,200 high-tech jobs to Upstate. With the Albany Center of Excellence, SEMATECH, IBM's chip-fabs in East Fishkill, Tokyo Electron Limited, ASML, Applied Materials, INVENT and now AMD, we have created a powerful semiconductor industry cluster that is transforming the Upstate economy and creating thousands of new high-tech jobs. This announcement is another key step in the creation of our Empire State High-Tech Corridor and makes clear that our SEMI-New York initiative is a success. I want to thank Hector Ruiz and the AMD Board of Directors for this tremendous vote of confidence in New York State."

Assembly Speaker Sheldon Silver said, "My Assembly colleagues and I recognized the unique possibilities and potential economic benefits of this new-technology industry when we funded the first ever clean-room facility at the State University at Albany. That initial investment has created a dynamic, growing, synergy here that has attracted AMD to conclude New York is the place to be. Our state is making its mark on the world�s high-technology stage. Our talent, our universities, our workforce and our investments are creating the environment that this industry seeks. New York State�s high-tech future couldn�t be brighter."

Congressman John Sweeney said, "I'm pleased to stand with Governor Pataki, Majority Leader Bruno and many public and private partners today to see the positive result of years of hard work and investment from the community. I was particularly proud to bring $20 million for water and transportation infrastructure at Luther Forest and $90 million to the education institutions, research and development projects, and technology hubs in the Capital Region to help create an environment for an announcement of this magnitude. I have worked closely with the Semiconductor Industry Association and I'm proud to represent the industry in Washington, and now AMD locally. I welcome Hector Ruiz and AMD into our community, the well-paying jobs are critical for the working families of Upstate New York."

Town of Malta Supervisor Paul Sausville said, "I would like to thank the Governor and everyone that was involved in bringing this wonderful company to our town. We are very excited and looking forward to meeting the officials of AMD."

Harry Gutheil, Chair of the Saratoga County Board of Supervisors, said "I would like to applaud Governor Pataki and Senator Bruno for their leadership and vision in bringing a wonderful company like AMD to Saratoga County. The investment will not only have immediate impact with the creation of jobs, but this is a huge investment for economic growth in the future for upstate New York."

Advanced Micro Devices is a leading global provider of innovative microprocessor solutions for computing, communications and consumer electronics markets. Founded in 1969, AMD is dedicated to delivering superior computing solutions based on customer needs that empower users worldwide.

Currently, AMD conducts research and development with IBM at its East Fishkill facility and is also a partner in International SEMATECH North, INVENT, and the Center for Semiconductor Research at the Albany Center of Excellence in Nanoelectronics.

In consideration of AMD's historic agreement with the State of New York, AMD is eligible for a $500 million capital grant to defray the cost of the facility and equipment. New York will also make available to AMD a $150 million research and development grant to help develop new innovative microprocessor technologies for use at the Luther Forest facility, in collaboration with IBM in East Fishkill and the Center of Excellence in Nanoelectronics at the University at Albany. It is also expected that AMD will be eligible for benefits under New York�s world class Empire Zones Program.

The preparation of the site, which began in September 2002, and necessary infrastructure and utility upgrades for this and future projects at the Luther Forest Technology Park is being supported with the assistance of funding from Congressman Sweeney, New York State, Saratoga County, the towns of Malta and Stillwater and National Grid. These improvements include new access and internal roads, water and water treatment lines, improved and expanded electrical service and natural gas to the site and surrounding communities. Road infrastructure and utility upgrades will total $80 million and $200 million respectively.

Saratoga Economic Development Corporation President Ken Green said, "We applaud the Governor, Senator Bruno and Congressman Sweeney for their investment in bringing this momentous day to fruition. With this investment, they will have transformed the Upstate economy from Fishkill to Glens Falls and Albany to Utica. Not only will this company create 1200 new jobs in the fab but will create another 3600 jobs in the region to support the facility. This kind of investment hasn�t come to New York State for two decades."

 

Details concerning today�s announcement include:

AMD will be investing approximately $3.2 billion in plant and equipment, placing the Luther Forest project among the largest manufacturing projects in the US, according to Site Selection magazine.

This agreement would also allow for the largest private-sector investment in New York State history. The previously largest investment was the $2.5 billion spent in 2000 to build a 300mm wafer fabrication plant in East Fishkill, Dutchess County.

Only three recent projects worldwide would represent larger total investments: a $12 billion steel plant in India; a projected $3.5 billion wafer fab investment in Austin, Texas; and a $3.5 billion chip-fab investment in Israel.

AMD's selection of the Luther Forest Technology Campus for their next wafer fab would represent the first time that a 300mm fab would be built at a new campus in North America. All of the previous 300mm Fabs built in North America have been expansions or built at existing semiconductor company campuses.

Only 20% of the 300mm Fabs in the world are in the US. Asia has captured over 65% of 300mm Fab projects. AMD's Luther Forest Fab would counter this trend.

AMD's Luther Forest Fab would be the fourth 300mm Fab built in New York State, making us the leader in states with 300mm Fabs. There are two 300mm Fabs in Oregon; two 300mm Fabs operating in Arizona, with one under construction; Texas is home to two 300mm Fabs with a third just breaking ground in Austin.

According to an October 2004 report from the Center for Business Research at Arizona State University, a fab�s current presence in Arizona has a $2.6 billion annual impact on the state's economy and supports 27,680 indirect Arizona jobs. Among the impact's components are approximately $50 million in taxes still paid each year by the company, $87.5 million in employee taxes and $276 million in goods and services purchased from Arizona-based businesses. Arizona has two Fabs with support facilities employing over 8,000.

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