"The ground-breaking was in April 2016 and we are on plan to ramp up production in 2018. And that growth I talked about can be done without the fab. Where we can differentiate in silicon we manufacture in house. Where we can use standard manufacturing processes we can outsource," said Everke. "So we run a mix of in-house and outsource in both the front-end and the back-end. We have our own back-end facility for testing in the Philippines. So we can choose the pace at which we ramp in New York." The nature of the deal is such that New York State bears the upfront cost of building the shell but AMS owns the chip manufacturing equipment going in to the building and operational costs.
Everke said he would expect to run foundry business in New York and that foundry might expand as New York ramps initially. "It is part of our business. It is not strategic but it is very profitable. It keeps us in touch with our sector and helps us find acquisition targets. TAOS was a foundry partner prior to its acquisition in 2011."
Everke added that AMS would not transfer manufacturing to what will be a newly-built and presumably highly automated and efficient New York fab at the expense of its manufacturing in Austria, which dates back to the origins of the company in 1981. "We will keep the fab in Austria at the maximum load. But what products get manufactured where is another issue."
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