Anonymous ID: 3dca99 Oct. 7, 2018, 8:02 p.m. No.3388573   🗄️.is 🔗kun   >>8598 >>8787 >>8845

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sauce: https://www.timesunion.com/7day-business/article/Collapse-of-500-million-SUNY-Poly-deal-had-11182851.php

 

Collapse of $500 million SUNY Poly deal had worldwide consequences

 

GlobalFoundries to receive $7.5M state grant for Fab 8 lithography machine

 

A $7.5 million grant the Cuomo administration is giving GlobalFoundries is the latest effort by the state to clean up the fallout from the SUNY Polytechnic Institute bid-rigging scandal that now appears to have had a far-reaching impact across the industry.

 

Empire State Development, the state agency that took over SUNY Poly's commercial projects last fall, revealed last week that GlobalFoundries will use the grant to help pay for a special $200 million lithography machine to will be used at GlobalFoundries' Fab 8 factory in Saratoga County.

 

But that wasn't the original plan.

 

Rather, the lithography machine, which etches nanometer-sized computer chip designs onto silicon wafers using extreme ultraviolet, or EUV, light, was supposed to be installed at SUNY Poly's campus in Albany as the centerpiece of a $500 million lithography research program led by GlobalFoundries that was announced in April of 2016.

 

Known as the Advanced Patterning and Productivity Center, the program was one of the largest ever at SUNY Poly and also included IBM and Tokyo Electron as participants.

 

But then came the scandal. After SUNY Poly founder Alain Kaloyeros was arrested on state and federal bid-rigging charges in September, SUNY Poly's portfolio of construction projects and research deals with commercial partners were put under the control of Empire State Development, the state's economic development arm.

 

By that time, GlobalFoundries had already placed its order for a $120 million EUV lithography machine for the APPC from a Dutch company called ASML.

 

But sometime between then and the end of 2016, GlobalFoundries decided it didn't want to install the machine at SUNY Poly, although the exact reason for that decision - and whether it was due to Kaloyeros' departure - is unclear.

 

GlobalFoundries decided instead to have the ASML machine installed at its Fab 8 factory in Malta, and the APPC never materialized.

 

What was not widely known at the time was that the decision to suspend the APPC had a major impact on ASML, which is a publicly-traded company.

 

During a January conference call with stock analysts, ASML executives had to explain that one of the company's EUV machines wouldn't be shipped on time as expected. The machine, it turns out, was the one originally planned for SUNY Poly. Companies typically cannot book revenue until a product is installed at a customer site.

 

But GlobalFoundries, which employs more than 3,100 people now at Fab 8, and the state kept talking.

 

"Since the time the APPC was suspended, we have continued to hold discussions with ESD about alternative projects that would fulfill the APPC's mission…" GlobalFoundries spokesman Steve Grasso told the Times Union.

 

Those discussions led to the state offering GlobalFoundries a $7.5 million grant, which covers about 8 percent of the cost to upgrade the ASML machine to a next-generation version that can etch even smaller computer chip designs.

 

GlobalFoundries is planning to have the upgraded ASML machine installed next year and be used in commercial production of chips using 7 nanometer architecture.

 

And now ASML will fill a $200 million order for the upgraded EUV machine.

 

"This is not a re-launch of the APPC, but we are committed to our ongoing partnership with SUNY Poly to support innovation and economic activity throughout the region," Grasso said.