Daily Gazette

AMD outlines emission controls
Scrubbers, absorption gear planned
Wednesday, February 27, 2008

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An artist's rendering of the planned chip fabrication plant in Luther Forest.
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— Advanced Micro Devices will include advanced pollution control measures in its planned Luther Forest computer chip factory, company officials said Tuesday.

In addition to air emission controls, the company will recycle the manufacturing process chemicals at the $3.2 billion factory, and have its environmental record monitored by a third party.

Air emissions controls will be spelled out in a permit application that will soon be filed with the state Department of Environmental Conservation.

“Scrubbers and absorption equipment,” said Steve Groseclose, AMD’s director of regulatory affairs. “It’s not a mystery how to control your air emissions. We know how to do it, and DEC knows how to do it.”

Concerning chemical use, AMD will also take extensive steps to recover and recycle industrial chemicals, he said, and hopefully sell them afterward.

“What’s waste to us is a highly prized chemical to others,” he said.

Groseclose spoke as AMD officials met with reporters at a Saratoga Springs law firm on Tuesday, a day after the company filed zoning amendment and environmental review documents with the town of Malta.

About 1,465 people are expected to work in the 890,000-square-foot manufacturing plant.

Firm officials are currently hoping to wrap up the town review in time to start preparing the site this summer, and to be clear to start construction in January.

Company representatives said Monday they would like the town’s environmental impact review wrapped up by this summer. It will build on a generic environmental impact statement the town approved for the Luther Forest Technology Campus in 2004.

“We really believe the environmental impacts of emissions to air and water have been thoroughly studied already,” Groseclose said.

Computer chip manufacturing involves etching extremely tiny electrical circuits on silicon wafers using acids and other corrosive chemicals, then flushing them with large volumes of purified water. That’s why the plant is expected to use 3 million gallons of water per day.

Groseclose said pre-treatment will remove some of the hazardous chemicals before the waste water is discharged to the county sewage treatment plant in Halfmoon.

Whether the environmental protection measures being discussed are sufficient will ultimately be decided by the town, and Town Supervisor Paul Sausville said he has yet to closely study the issue.

“We really haven’t looked at that yet,” Sausville said Tuesday.

On other topics, AMD project manager Terry Caudell said the company is still “several months” from making a final decision on whether to proceed with the Luther Forest plant.

Under a $1.2 billion incentive package agreement with the state, AMD has until July 2009 to break ground. Since the agreement was announced in 2006, AMD has sustained over $1 billion in losses, and begun discussion of an “asset light” strategy that would reduce capital spending.

The company won’t say exactly what that means to the Luther Forest project, except that the final decision will be up to the company’s board of directors.

“Discussions about future manufacturing strategies are very complex and highly confidential,” Caudell said.

But in a fact sheet, the company states: “This project is very important to AMD’s long-term business strategy, so the company is continuing to invest in the project and putting all the necessary pieces in place before it officially commits to groundbreaking.”

AMD has about 20 percent of the microprocessor market, and has been locked in an intense price war with industry leader Intel. Caudell said the company believes it could eventually achieve a 30 percent market share.

Corporate spokesman Travis Bullard said the late 2006 acquisition of graphics chip maker ATI will eventually lead to a merging of microprocessor chip and visual chip technologies. ATI chips are found in popular gaming devices like the XBox 360 and Nintendo Wii.

Michael Relyea, executive director of the Luther Forest Technology Campus Economic Development Corp., said construction of the major road and power line infrastructure at the 1,350-acre site should start this spring, and be done in mid-2010.

Caudell called that timetable “acceptable” to AMD’s proposed plant construction schedule.

If the plant broke ground in 2009, it wouldn’t start production before 2011-2012, Caudell said.


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