An Arizona-based semiconductor supplier will buy GlobalFoundries' computer chip manufacturing plant in the Hudson Valley, creating 150 new jobs and preserving hundreds of others as part of a $720 million expansion plan, Gov. Andrew Cuomo announced Monday.
 
The Democrat said in a statement that Phoenix-based ON Semiconductor will establish its first 300mm chip manufacturing plant at GlobalFoundries' Fab 10 facility in East Fishkill, 60 miles (96 kilometers) north of New York City.
 
ON Semiconductor has fully committed to creating 150 new jobs in East Fishkill and maintaining a minimum of 950 existing jobs at the facility, Cuomo said. 'We're glad ON Semiconductor is choosing to deepen its roots here and its commitment to New York State,' he said. The deal calls for GlobalFoundries to transfer manufacturing from Fab 10 to their other facilities, including Fab 8 in Malta, New York, 100 miles (161 kilometers) north of East Fishkill.
 
The state has offered ON Semiconductor up to $17.5 million in grants for the purchase of the Fab 10 property, and also another $22.5 million in tax credits over 10 years if the company meets its job creation and investment commitments.
'The increased level of capability and capacity enabled by this expansion is our answer to meet critical market needs,' Keith Jackson, president and CEO of ON Semiconductor, said in a statement.
 
After a 3 year transitional period, ON Semiconductor will obtain ownership of the East Fishkill facility, which GlobalFoundries purchased from IBM in a $1.5 billion deal announced in 2014. Under terms of the deal announced Monday, ON Semiconductor may pay off $100 million at the agreement signing with GlobalFoundries and $330 million at the end of 2022.
 
Last summer, GlobalFoundries stated it was cutting out about 400 jobs at its Fab 8 plant in Malta as it restructured operations and moved away from cutting-edge chip technology. GlobalFoundries is owned by the government-backed Mubadala Development Company in Abu Dhabi, United Arab Emirates.
 
The high-tech industry deal was the second main economic develop win announced by the Cuomo administration over the last four days. On Thursday, the third-term governor declared that Netflix was widening its corporate offices in Manhattan and building six sound stages in Brooklyn, where thousands of production jobs will be located.
 
That announcement came two months after Amazon backed out of a deal that perhaps could have brought more than 25,000 new jobs to Queens. The internet retailer ditched New York on Valentine's Day, stating inflexible backlash from some local politicians in opposition to the $3 billion in city and state tax breaks offered to Amazon.
 
This article is originally posted on tronserve.com