ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Tuesday, May 21, 1996 TAG: 9605210081
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
DATELINE: RICHMOND
SOURCE: ASSOCIATED PRESS
Motorola Inc. and Siemens A.G. confirmed Monday they will build a $1.5billion semiconductor plant in suburban Richmond, the third chip-plant announcement in the state in 13 months.
The 600,000-square-foot facility in eastern Henrico County will employ up to 1,500 people making Dynamic Random Access Memory chips, or DRAM chips, the temporary memory needed in all computers.
In September, Motorola proposed developing a $3billion chip-making plant in Goochland County, about 20 miles west of the Henrico site. In August, IBM and Toshiba announced a joint venture to invest $1.2 billion in a Manassas facility in Northern Virginia. The Goochland plant is expected to employ up to 5,000 people, while the Manassas plant will generate 4,000 jobs.
Juergan Knorr, head of Siemens Semiconductor Group, told a gathering of more than 150 state legislators, local officials and officers from both companies that the Henrico County site was selected over 20 others in the United States.
``The site has the best combination of attributes that we are looking for, including such things as a good quality of life, a skilled work force and an excellent educational system,'' he said.
The state is providing a $19.9million incentive package to the venture, including $1.4million in job tax credits, $1.5million in work force training, $15million in performance-based grants and a $2million investment in higher education.
Virginia's secretary of commerce and trade, Robert T. Skunda, said the state estimates the plant will generate an additional 3,000 jobs in the local economy. Over the first 20 years of the operation, the state estimates, it will produce $146.1million in direct and indirect state tax revenues.
Thomas D. George, president of Motorola Semiconductor Products Sector, said the company's experience with the Goochland plant was a deciding factor when it came to the location of the joint venture.
``We have received exceptional cooperation, for which we are deeply thankful. ... This is a superb place to create more and growing businesses,'' he said.
Officials said construction would begin during the final quarter of this year, and production could begin as soon as mid-1998.
Knorr said the new venture would be called White Oak Semiconductors and would be situated on 175 acres near the Richmond International Airport.
The majority of the White Oak incentive package is in bonuses based on how many chips are produced, employees hired and other criteria.
Skunda said structuring the incentive packages in this manner protects the state. Last month, Motorola announced it was delaying by a year construction of the Goochland County plant, which now is scheduled to open in late 1997 or early 1998. Motorola will not see any of the money until the plant is up and running.
LENGTH: Medium: 65 lines ILLUSTRATION: PHOTO: AP. Chairman of Siemens Semiconductor Group, Juerganby CNBKnorr (left), and Thomas D. George of Motorola listen to a message
from Gov. George Allen on Monday in Richmond. color. KEYWORDS: JOBCHECK