Saratoga approves $111 million GlobalFoundries tax exemption

Saratoga County, New York State, has given maker of chips GlobalFoundries a $111 million tax break as a fab expansion incentive.

The Saratoga County IDA already offered $28 million in sales tax exemption for building materials in the fab’s construction, which means the total incentives are at $139 million. That’s peanuts compared to the $336 million it would take for the fab to be built, plus the $1.4 billion to kit it out properly. GloFo execs are still umm-ing and ahh-ing. 

The only dissenting voice, outvoted six to his one, was from Charles Hanehan who didn’t approve of initial incentives either. It isn’t hard to see why: the rich GloFo says it will expand depending on incentives, and a lack of incentives will be factored into future business decisions, reports the PostStar

Still the rest incentives by way of tax breaks is the way forward and it appears to have appeased the chippy beast. GloFo is “pleased”. A spokesman, Travis Bullard, is reported as saying: “As we consider plans for increasing production capacity around the world, the costs of doing business in each location definnitely go into the calculations on where best to add facilities.”

Meanwhile it is receiving further backing from Advanced Technology Investment Company, or ATIC – which is the United Arab Emirates government agency that understands chips are lucrative and good for industry.