- Associated Press - Monday, October 20, 2014

ALBANY, N.Y. (AP) - GlobalFoundries’ chief executive said Monday the chip manufacturer plans no shutdowns or layoffs at the IBM semiconductor factories in New York’s Hudson Valley and Vermont that it is acquiring.

CEO Sanjay Jha told reporters on a conference call that GlobalFoundries will welcome about 5,000 IBM employees, including “800 of the best technologists in the world.”

His company recently built a large manufacturing facility in upstate New York, about 30 miles north of Albany. Now the No. 2 producer of the computer chips worldwide with eight fabrication facilities, the company plans to invest $10 billion over the next two years, mostly in New York, and grow, he said.

“We plan to offer substantially all employees at East Fishkill and Burlington, Vermont, a job at GlobalFoundries,” Jha said. “We have no plans for layoffs or plans for shutting the fabs down. Of course fabs have to stay competitive over the long term. But that is our commitment.”

“We will overall welcome a little over 5,000 employees from IBM to GlobalFoundries, but 800 of them are core technologists who will drive the business to the next level,” Jha said.

GlobalFoundries plans to provide chips for a decade to IBM. As part of the deal announced Monday, IBM expects to pay $1.5 billion over three years, the companies said.

The chip manufacturer expects to complete the acquisition next year, spokesman Travis Bullard said. It now has about 2,800 direct employees at its new facility in upstate New York and should have well over 3,000 there by the end of the year, he said.

IBM plans to focus on research and large computer systems, including future cloud, mobile, big data analytics and secure transaction systems, the company said. It said it will continue the previously announced $3 billion investment over five years in semiconductor technology aimed at what IBM called the lead in the next generation of computing.

IBM Senior Vice President John Kelly said it will uphold its job commitments in New York.

“In this agreement, GlobalFoundries is offering a position basically to all of our employees at the Fishkill site,” Kelly said. “Our research facility in Yorktown Heights will continue to be one of the major sources of this $3 billion investment in future research. … Our presence in Albany Nanotech at SUNY Polytechnic is absolutely critical.”

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