A Fortune 500 company will invest over $700 million to buy and preserve an existing plant in the Hudson Valley.

On Monday, Gov. Andrew Cuomo announced that ON Semiconductor, a Fortune 500 company with a global customer base, will expand operations in New York State by purchasing and preserving the existing GlobalFoundries Fab 10 manufacturing facility in East Fishkill.

ON Semiconductor has committed to invest more than $720 million over 10 years in the East Fishkill facility to establish its first 300mm chip manufacturing plant, further fueling strategic growth for the company in the areas of power management including automotive electrification, 5G mobile networks, cloud computing and alternative energy, officials say.

"ON Semiconductor's decision to expand and grow its operations in New York State is proof positive that smart investments in our innovation economy are working and fueling New York's unprecedented growth," Cuomo said. "We're glad ON Semiconductor is choosing to deepen its roots here and its commitment to New York State."

GlobalFoundries is shifting production from their facility in Dutchess County to ones in Malta. New York State officials helped to secure a 3.5-year transition path between GlobalFoundries and ON Semiconductor that will ensure Fab 10's continued operation and $720 million in new capital spending at the East Fishkill facility.

At the end of the transition period, ON Semiconductor has committed to hiring 950 current GlobalFoundries employees currently working in East Fishkill with plans to create approximately 150 new, well-paying jobs in the Mid-Hudson region.

According to the Governor's Office, In exchange for ON Semiconductor's commitments, Empire State Development has offered to provide up to $17.5 million in grants toward the purchase of the Fab 10 property, facilities and certain manufacturing equipment, and $22.5M in Excelsior Jobs Program tax credits related to its investment, new hiring and research and development over ten years. Award of both the grant and the Excelsior tax credits are contingent on ON Semiconductor meeting its job and investment commitments.

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