Nanotechnology: Forging Partnerships and Transforming the Mohawk Valley

Nanotechnology: Forging Partnerships and Transforming the Mohawk Valley A Community Guide to Marcy Nanocenter at SUNYIT, the Semiconductor Industry and More N anocenter at SUNYIT www.marcynanocenter.com

Marcy Nanocenter at SUNYIT Timeline 1997 Mohawk Valley EDGE responded to a request from New York State for sites to be considered viable for chip fabrication 1998 Marcy Nanocenter site named in New York State Report listing 13 possible chip fabrication sites in New York State 1999-2001 An Environmental Impact Study is conducted to validate the Marcy site 2001 The Town of Marcy rezones site for nanotechnology. Wetland Permit application process began 2002 EDGE began an aggressive marketing plan including industry trade shows, conferences, advertising and direct sales calls 2005 Site studies conducted for vibration, noise, EMF to validate location viability to the industry 2006 Marcy Nanocenter at SUNYIT is described as A World Class Site for Nanoelectronics Manufacturing (quote from Hector Ruiz, AMD s former CEO, during their site selection search) in Albany Times Union $4 million grant received from New York State 2007 Economic Impact Study commissioned. Semico to study the effect of a Chip Fab on the State and region (Semico Report available at MarcyNanocenter.com) 2008 Familiarization tour to Hillsboro, Oregon to see and meet with a community similar to ours that grew dramatically when Intel sited a Fab in this location Semico Report completed and released 2012 Semi High Tech U, first class of local teachers participate in a 2-day workshop to incorporate nanotechnology into their curricula 2009 Launch of website MarcyNanocenter.com New York State allocated $20 million for site development Announcement of Quad C project 2013 Construction of Quad C building begins Second Semi High Tech U Workshop On-site relocation of Porter Terminal #6 2010 Marcy-SUNYIT Parkway design and construction Additional land acquisition On-going projects: Wetlands Permit County Sewer Inter ceptor Construction Marketing of site Site improvements 2011 Project Development Agreement (PDA) signed by EDGE, SUNY Research Foundation, SUNYIT Water and sewer improvements made to site Additional land was purchased to expand site $20 million secured through CFA process for Quad C, Oneida County Interceptor and the Ring Road Key Partners in developing Marcy NanoCenter at SUNYIT read more on the partnership on pages 5-6 1

Semiconductor Industry Overview/Information What is Nanotechnology? Nanotechnology is the science of manipulating materials on an atomic or molecular scale especially to build microscopic devices. What is a Semiconductor? A substance with electrical connectivity between that of a conductor and an insulator. the width of one human hair is 50,000-100,000 nanometers wide What is a Semiconductor Device? A series of integrated circuits on a semiconductor (typically silicon) substrate (chips). What is a Fab? Semiconductor Fabrication Facility (Fab): a high tech, ultra clean, facility with highly skilled employees, where semiconductor chips are manufactured. The supply chain to this facility and industry is large and diverse. A nanometer = one billionth of a meter Scope of Semiconductor Industry Chips are found in everything from televisions and cell phones to computers and automobiles. It is a global industry with the majority of leading edge manufacturing fabs currently located in the United States and Japan with a burgeoning number of fabs in Asia. New York State recognized the growth potential of this industry over a decade ago. In Albany, the College of Nanoscale Science and Engineering was formed in 2004 and has become a global leader in research and development for the semiconductor industry. Across New York State, more than $14 billion in public and private funds have been invested on high tech research and development in the last 10 years. As the semiconductor industry moves to a new technology platform, New York State is well positioned to capitalize on its investment. Growing Semiconductor manufacturing is a $300 billion industry, expected to grow to $375 billion by 2015 CHANGING Changing from a 350mm to a 450mm platform size requires new tools and signals a build cycle in the industry LARGE EMPLOYER There are typically between 1,000-1,500 employees per Fab HIGH AVERAGE SALARY Fab jobs pay an average of $70,000 annually in the USA LARGE JOB MULTIPLIER For every job at the Fab, 1.9 jobs are created in the region and 2.2 more jobs are created in New York State IMPACT The five year economic impact of one Fab would be $2.8 billion to the local economy >> chips are found in objects we use every day such as computers, phones, televisions and even our automobiles. 2

Current aerial shot of site Marcy Nanocenter at SUNYIT Site Advantages In the late 1990 s New York State conducted a statewide search for locations which met the criteria for semiconductor manufacturing. The Marcy Nanocenter at SUNYIT location has the following site specific advantages. Site Specific Advantage 420+ acres Site Improvements - Capital Projects From the original 309 acres, another 111 acres was purchased and rezoned Why It s Important Companies build-out Fab campuses over time. Sites must have enough land for a multi-fab design. The Mohawk Valley Water Authority has an excess of 28 million gallons per day. Power: Redundant feed 115kV; 99.9999% reliability Background noise, Electro Magnetic Frequency and vibration free. Logistics: Close proximity to major highways Shovel ready: Short time frame from decision to groundbreaking due to completed infrastructure $1.15 million project - Installation of 24 water line Abundant and reliable power is available from the Edic and Porter substation. The site is adjacent to the nexus of the Upstate Power Grid No improvements required No improvements required $5.68 million Ring Road project $11.5 million sewer improvements to county interceptor Water is used to rinse silicon wafers after each step in the manufacturing process every time a chip is imbedded with another circuit, of which they have many. A chip fab uses 9 million gallons a day. Chip fabrication requires an uninterrupible large power supply. If a power failure occurs during chip fabrication, the entire batch of chips is rendered useless. This loss is millions of dollars. Because work at the nanoscale level requires highly sensitive tools such as scanning electron microscopes, any vibration or electrical interference will compromise the manufacturing process. This is a global industry and travel is often a requirement. The catchment area for employees is within an hour drive. To be globally competitive, the time frame from decision to groundbreaking must be a few months or less. Completing infrastructure improvements prior to securing a tenant for Marcy Nanocenter at SUNYIT reduces the time needed for construction, tool installation and the ramp up of their operation. 3 Investors to Date Investments to Date New York State: $34.7 million, Oneida County: $6.5 million, National Grid: $2 million, EDGE: $2.7 million, Oneida County Industrial Development Agency (OCIDA): $354,000 $47 million budget, $22 million spent to date on capital expense projects, site assembly, marketing and project administration (see page 1).

A rendering of development of the site Marcy Nanocenter at SUNYIT is a 420+ acre greenfield site on the campus of SUNYIT. It is among the largest shovel-ready site in New York State s Tech Valley. With EDGE leading the site development and marketing, it competes on a global scale to recruit this industry. Tax Sharing Agreement Structure PILOT Increment Financing (PIF) Tax Sharing Structure Project development associated with the semiconductor industry frequently presents obstacles requiring unique solutions to make projects financially feasible. One innovative way to offset the added costs of challenging development projects is through the use of PILOT Increment Financing or a PIF. A PIF allows local government to allocate PILOT proceeds with a predetermined share for the taxing entities, and the balance dedicated for project improvements and regional initiatives. The tax sharing agreement for Marcy Nanocenter at SUNYIT establishes how these unique facilities will be assessed and taxed via a PILOT agreement. It allocates a portion of the PILOT payments to: the taxing jurisdictions (Oneida County, Maynard Fire Department, Dunham Public Library and Whitesboro School District), the host town (the Town of Marcy), and a revenue stream to support the overall needs of the project. Key PIF Stakeholders Dunham Public Library Maynard Fire Department Mohawk Valley EDGE New York State Oneida County Oneida County Industrial Development Agency Town of Marcy Whitesboro School District 4

PART IN NANOTE CNSE s Albany NanoTech Complex SUNY College of Nanoscale Science and Engineering (SUNY CNSE) In accordance with Governor Andrew M. Cuomo s blueprint for innovation-driven economic growth, the SUNY College of Nanoscale Science and Engineering (SUNY CNSE) is the first college in the world dedicated to education, research, development, and deployment in the emerging disciplines of nanoscience, nanoengineering, nanobioscience, and nanoeconomics. CNSE facts 1.3-million-square-foot CNSE Albany NanoTech Complex houses the only fully-integrated, 300mm and 450mm wafer computer chip pilot prototyping and demonstration lines within 135,000 square feet of Class 1 capable cleanrooms More than 300 industry partnerships, including the world s first Global 450mm Consortium (G450C) More than $17 billion in public and private high-tech investment More than $250 million in annual university-sponsored research & development, projected to increase to $500 million by 2015 More than 3,100 on-site scientists, researchers, engineers, students and faculty, with current expansion to enable over 1,000 new employees Integrating academia, industr atomic scale knowledge, educa and spearhead economic Marcy Nanocen Marcy Nanocenter at SUNYIT is a 420+ acr It is among the largest shovel-ready With CNSE leading the site developmen effort, it competes on a globa Growing statewide presence with facilities in Marcy (Quad-C and Marcy Nanocenter at SUNYIT), Rochester (Photovoltaic Manufacturing and Technology Development Facility and Smart System Technology and Commercialization Center), Buffalo (CNSE-AMRI Innovation and Commercialization Ecosystem at Buffalo Niagara Medical Campus), Halfmoon (Solar Energy Development Center), and downtown Albany (Smart Cities Technology Innovation Center) Rendering and site layout for MarcyNanocenter at SUNYIT Evolution of Packaging: Transformation of wireless voice communication devices 1960-1970 1980 - mid 1990 1996-2001 5 Ceramic flat packs, Dual in line (DIP) Technology - Walkie-Talkies - CB radios Surface Mount Technolgoy - Cell phones and bag phones - Small outlined integrated circuit (SOIC) Land Grid Arrays (LGA) and Printed Circuit Boards (PCB) Technology - Cell phone app development (text, internet integration)

NERS CHNOLOGY y and government to advance te the 21st century workforce, investment and growth. ter at SUNYIT e greenfield site on the campus of SUNYIT. sites in New York State s Tech Valley. t and EDGE spearheading the marketing l scale to recruit this industry. Computer Chip Commercialization Center (Quad-C) The CNSE-SUNYIT Quad-C initiative is one component of Governor Andrew M. Cuomo s two-tiered CNSE-SUNYIT-EDGE innovation, education, and commercialization partnership that aims to transform the Mohawk Valley into a hub for nanotechnology research, development, and manufacturing. The second component is the Marcy Nanocenter site, which is being designed to accommodate one or more global corporate manufacturers. QUAD-C facts The Quad-C facility will enable leading-edge research in partnership with private nanotechnology companies to drive advanced development and commercialization opportunities related to system-on-a-chip technologies Construction on the SUNYIT campus began in summer 2013 on a 4-story, 200,000 sq. ft. building with 55,000 sq. ft. of cleanroom space The $125 million Quad-C building will include state-of-the-art cleanroom space, as well as expanded space for educational and IT workforce training programs, and office space for corporate partners that will locate on site At full build out, this $500 million initiative is expected to create more than 900 high-tech jobs on site Completion of the project is expected at the end of 2014 Rendering and site layout for Quad-C The existence of this hub for innovation and commercialization, together with the presence of world-class private industry partners, will also open up a new world of learning, workforce training, and internship, scholarship, and fellowship opportunities for SUNYIT students Research and development at Quad-C will develop the next technology in packaging. 2003 - present Ball Grid Array (BGA) and Pin Grid Array (PGA) Technology - Smart phone development multiple applications, sizes and processing speeds What s Next? 3-Dimensional Integration Technology Smaller, faster, lighter, generating less heat, more function 3D Integration (a.k.a. System on Chip): An advanced packaging design for vertically stacking and connecting materials, technologies and functional components together on a single silicon wafer. To date it is an emerging technology that shows great promise to reduce form factors, extend battery life and reduce cost. 6

New York s Tech Valley Regional Advantages WORKFORCE DEVELOPMENT Programs designed with local and national colleges, from Mohawk Valley Community College and Herkimer County Community College to Clarkson, Cornell, Rochester Institute of Technology and Rensselaer Polytechnic Institute. The STEM hub introduces Mohawk Valley students in grades K-12 to science, technology, engineering and math and introduces them to careers in advanced manufacturing. New York s Tech Valley PROXIMITY Close proximity to the College of Nanoscale Science and Engineering in Albany (world renowned R&D center for the Semiconductor industry), Semtech (a not-for-profit consortium that performs research and development to advance manufacturing), GlobalFoundries in Malta (a 1.4 million sq. ft. Fab opened in 2011 with 2,000 employees) and IBM in Fishkill and Burlington, VT (with over 28,000 employees within a four hour drive), as well as the world renowned Watson Research Center in Yorktown Heights, NY. CONCENTRATION OF EDUCATION Large concentration of Colleges and Universities with Engineering, Math and Science programs. QUALITY OF LIFE Diverse population base, affordable housing, distinguished school districts, attractive Quality of Life resources. LOCAL COMPANIES INVOLVED WITH THE INDUSTRY Indium Corporation JH Rhodes G&K Services Coventya Valutek nfrastructure Burlington, VT Marcy N anocenter at SUNYIT 7

How the Semiconductor Industry Transforms Communities Like Ours Case Study: Malta, Saratoga County, New York Home to GlobalFoundries, Fab 8 Mid 1990 s 1998 Early 2000 s 2005-2006 2009 TIMELINE Jobs declining in Saratoga County New York State Report lists 13 possible chip fabrication sites in New York State Saratoga Economic Development Corporation (SEDC) purchased Luther Forest and began marketing property to semiconductor industry Advanced Microelectronic Devices (AMD) began a global site search for a new chip fab location. Luther Forest in Malta, NY was ultimately selected (Marcy site was named as runner-up). GlobalFoundries was created as a spinoff of AMD. GlobalFoundries is a separate company that took over AMD s manufacturing division. INVESTMENT TO DATE: GlobalFoundries: $8 billion New York State: $1.3 billion ($680 million in grants, $650 million in tax credits) RESULTS (as of June 2013): Direct jobs: 2,150 employees (3,000 employees anticipated by end of 2014) Indirect construction jobs: 10,054 people built Fab 8 TAXES AND PILOT PAYMENTS (to date): Town of Malta: $ 86,122 Town of Stillwater: $ 853,719 Saratoga County: $ 1,842,800 Ballston Spa School District: $ 14,195,130 Stillwater School District: $ 3,905,364 Malta Ridge and Arvin Fire District: (since 2011) $ 990,000 Libraries: (since 2011) $ 120,000 Road Maintenance: (since 2012) $ 43,601 Oct. 2009 - Present 2013 under construction Upcoming Construction commences. Fab 8.1 (which includes 300,000 sq. ft. of cleanroom), 2 administration buildings and 1 utilities/ gas yard. To date, more than 2 million sq. ft. has been constructed. Technology Development Center (including an additional 90,000 sq. ft. of cleanroom). Planning board approval for Fab 8.2 (a second chip fabrication facility on that campus) Community Investment: $5 million (since 2009) Staff Profile: 2,150 employees 40 different countries 50% of new hires have come from NY State 50% of new hires have come from out of state or country 70% of Fab 8 employees live in Saratoga County Workforce Profile: 40% Technicians and Operators: (no degree or two year degree required) 50% Engineering and Scientists: (min. of a bachelor s degree) Fields of study include: electrical engineering, material science, physics, chemistry, chemical engineering, mechanical engineering, mathematics 10% Business Support: (min. of a bachelor s degree) Fields of study include: finance, sales, procurement, human resources, marketing, legal, senior leadership, management Sample Job Titles and Salaries: General guidelines for estimated average annual salaries (as submitted to Saratoga IDA) Management: $140,000 Engineering: $90,000 Technicians: $60,000 Wafer Fab Operators: $30,000 Average Annual Salary: $80,000 per year * Information provide by The Saratogian Nanotechnology Special Edition, June 2013 8

Community Benefits Development at Marcy Nanocenter at SUNYIT will be transformational to the region! New Employment Opportunities - Directly in Fabs - Indirectly in supply chain companies - Indirect growth throughout economy Median Income Increase Average salary for industry is nearly 2 times the regional average Larger Tax Base Should bring per capita tax burden down Population Growth and Diversity National and international employees will relocate to the region Science, technology, engineering and math (STEM) focus for regional schools K-12 education and funding stream for curriculum development Increased education funding 9

What Can You Do? It is proven that we live in one of the most diverse, welcoming and charitable communities in the country. With the potential for growth at Marcy Nanocenter at SUNYIT, it will give us another chance to introduce newcomers to the greatness our area has to offer. Embrace the assets we have, talk about them, share them and spread positivity! Here are some reminders of why our area is awesome: PROXIMITY Living here, you benefit from the smaller city environment yet you can still enjoy big city life. Boston, New York City, and Montreal are only a 4 hour drive away. QUALITY OF LIFE The incredibly affordable cost to rent and buy homes help make the Mohawk Valley a great place to live. We have a charitable, helpful community, four seasons to enjoy, low crime, good schools, light traffic, tremendous outdoor activities, festivals, events, shopping, entertainment and more. The diversity of our population provides a cultural experience for all our strong refugee community includes individuals from Bosnia, Cambodia, Burma, Sudan and more. LOCAL CUISINE Utica is known for its Italian cuisine and unique offerings such as tomato pie, chicken riggies and half moon cookies. The area also hosts fabulous French, Greek, Japanese, Vietnamese, Mediterranean, Mexican, Indian and American restaurants. ARTS & MUSIC Munson-Williams-Proctor Arts Institute is a world class art museum. The historic Stanley Theater hosts Broadway shows of all types. We boast an international residence program for sculptors, one of the biggest annual antique festivals in the nation and even the alternative Indie Garage Sale. The Turning Stone Resort and Casino, which offers world class entertainment is only 20 minutes away and one can also attend events between one and three hours away at the Saratoga Performing Arts Center near Albany, The Blue Cross Arena at the War Memorial in Rochester, the Darien Lake Performing Arts Center in Buffalo and more. RECREATION The Adirondacks offer scenery, wildlife and year-round outdoor activities with more than 3,000 lakes and ponds and more than 6,000 miles of rivers and streams. During the summer, hunt, fish, hike, camp, rock climb, mountain bike, swim, and boat. During the winter, cross-country and downhill ski, snowboard, snowshoe, snowmobile, ice skate and curl. Nearby, we have eight local ski resorts and the best resorts on the east coast can be reached in two to four hours. EDUCATIONAL OPPORTUNITIES Utica is surrounded by higher education over 20,000 students come to our area each year to attend our local colleges: SUNYIT, Utica College, Hamilton College, Colgate University, Mohawk Valley Community College, Herkimer County Community College, Pratt Institute, Utica School of Commerce, St. Elizabeth School of Nursing, SUNY Morrisville and Empire State College. FAMILY ATTRACTIONS Activities for families include Enchanted Forest Water Safari, the Children s Museum, the Utica Zoo, the Boilermaker Kids Race, plenty of children s activities and fantastic playgrounds. History surrounds us at the Erie Canal Village and Fort Stanwix. Adventure awaits you at the Herkimer Diamond Mines, go-carts and more! SIGNATURE EVENTS From festivals, concerts and brewery events to the nation s largest 15K road race, we have events to keep your calendar full all year round! Enjoy Saranac Thursdays, The Great American Irish Festival, Utica Music Fest, the Boilermaker Road Race, Bouckville Antique Festival and many more exciting events throughout the Mohawk Valley. 10

For additional information on Marcy Nanocenter at SUNYIT, please contact: 584 Phoenix Drive, Rome, NY 13441 315.338.0393 or 1.800.765.4990 www.marcynanocenter.com Relocation resource: www.cmvh.org info@mvedge.com PUBLISHED SEPTEMBER 2013