I wanted to share with you the following article that was published by the Times Union:

Times Union: GlobalFoundries getting IBM’s fabs and workers

Posted on October 20, 2014 | By Larry Rulison

GlobalFoundries will take over IBM’s fabs in Dutchess County and Vermont and get IBM’s semiconductor workforce as part of the deal the two companies announced Monday.

More than 5,000 IBM employees from New York and Vermont will become GlobalFoundries employees, although the companies would not say how many are in New York .

IBM said it would work with GlobalFoundries on research and development at SUNY Polytechnic Institute in Albany as part of the deal. IBM recently committed to $3 billion in computer chip research and development over the next 5 years.

Those innovations will eventually be transferred to Fab 8, the chip factory that GlobalFoundry runs in Malta.

Chips will continue to be made in Vermont and East Fishkill into the future.

IBM will keep its Montreal chip packaging facility.

Tom Caulfield, the GM for Fab 8 who is an IBM alum, called the combination if Albany R&D and the Malta fab “Malbany.”

“It’s a tremendous, tremendous win for New York State,” Caulfield said in an interview with the Times Union.

The deal will cost  IBM $4.7 billion, including $1.5 billion in cash to GlobalFoundries.

There has been rampant speculation whether GlobalFoundries would keep IBM’s chip factories, or fabs, in East Fishkill in Dutchess County and in Vermont.

But clearly it will keep them, and GlobalFoundries even just opened a Vermont  office not long ago.

IBM said it made the deal so it could remain a leader in semiconductor  innovation. Chip manufacturing is extremely costly and is a volume-driven business that now favors companies like GlobalFoundries that have hundreds of customers.

GlobalFoundries employs nearly 3,000 people at its Fab 8 factory in Saratoga County.