Ribbon-cutting for new owner of chip plant

The end of an approximately three-year acquisition process was marked with a ribbon-cutting ceremony at an East Fishkill computer chip and wafer factory. The fabrication facility was acquired by ON Semiconductor, known as onsemi, from GlobalFoundries. It’s located at iPark 84, the former IBM campus that is now owned by Greenwich-based National Resources. The agreement also includes a technology transfer and development agreement and a technology license agreement.

It was back in 2019 that onsemi’s proposed acquisition of GlobalFoundries’ East Fishkill site and fabrication facilities was first announced. A waiting period required by the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other regulatory requirements delayed the actual transfer of the factory until Dec. 31, 2022. onsemi said that in addition to acquiring the manufacturing facility, the transaction added more than 1,000 technologists and engineers to its team.

The company said that it is going to be looking at opportunities for expansion in East Fishkill in view of aid it might receive from the recently-passed Federal CHIPS and Science Act as well as the New York Green CHIPS Program.

From left at the East Fishkill ribbon cutting: Michael Oates, president and CEO, Hudson Valley Economic Development Corp.; Joseph Cotter, president and CEO, National Resources; Sen. Chuck Schumer.

Senate Majority Leader Chuck Schumer attended the Feb 10 ribbon-cutting as did Senior Advisor to the Secretary of Commerce on CHIPS Implementation J.D. Grom and a host of local officials and business leaders.

“I am elated that onsemi has officially made East Fishkill home,” Schumer said. “onsemi has already hired nearly 100 new people and invested committed $1.3 billion to continue the Hudson Valley”™s rich history of science and technology for future generations. We are bringing manufacturing back to our country and strengthening our supply chains with investments like onsemi”™s in the Hudson Valley.”

The purchase price that was revealed in 2019 was $430 million. At that time it was reported that onsemi would be investing $720 million in the facility over a ten-year period. The Business Journals reported that Empire State Development had offered to provide up to $17.5 million in grants toward the purchase of the property, facilities and certain manufacturing equipment, according to then-Gov. Andrew Cuomo”™s office. In addition, the state was to provide $22.5 million in Excelsior Jobs Program tax credits related for investment, new hiring and research and development over 10 years. Awarding of both the grant and the Excelsior tax credits was to be contingent on onsemi meeting its job and investment commitments, according to the governor”™s office.