Updates: IBM Offloads Chip Business, Essex Facility To Global Foundries

I am happy that- for now- IBM took the steps necessary to protect the jobs that four thousand Vermonters have come to rely on. After years of failed leadership under Peter Shumlin, both as the President of the Senate and our Governor, our economy and the financial outlook for far too many Vermont families and seniors is moving in the wrong direction. Vermont needs to stop treating IBM, property tax payers, and small employers like ATMs used to subsidize failed policies, reckless government experiments and inept political leadership. Peter Shumlin has been a major part of the problem for over a decade. My administration will bring a fresh outlook, an employer friendly tone, and a plan to revitalize our economy.

From the public information available, IBM’s transfer of the Essex plant to Globalfoundries appears to be a good outcome for Vermont, keeping, and perhaps expanding, the roughly 4,000 jobs with a firm that is dedicated to chip production. It is still a cautionary tale in terms of future economic development, in that large, out-of-state companies can have goals that do not have Vermont at their core, and make us susceptible to changes that cut significant numbers of jobs in a single stroke. This can happen even when the people and facilities are performing at a high level of productivity, quality, and profitability. As a result, since such a large facility is strategic to the state’s economy, its fate must always be of great concern to the state, and while Vermont can do little to influence those external decisions, we must do our own contingency planning. Specific questions remain regarding responsibility for the clean-up of contamination at the site, which may have a lot to do with the negative “sale” price.

“Amid all of the rumors and speculation of the last few months, this has been a very difficult period for the highly-skilled and dedicated employees at the Vermont IBM facility. Now, with the purchase of the plant by Globalfoundries, a new era is beginning. We all hope that this new relationship will bring economic security for the employees and for the entire community. I look forward to working with the employees, Governor Shumlin and the new ownership to make this new relationship a success.”

As we wait for exact details on what the sale of the IBM Essex Junction plant means for Vermont, our top priority must be the well-being of the thousands of employees – and the Essex Junction community -- whose futures were in limbo. Today’s news provides some much-needed certainty after months of questioning. It is my sincere hope that GlobalFoundries will keep these valuable, high-paying jobs here in Vermont. But as we know all too well, the devil is in the details, and I stand with others, ready to help in any way I can, and will do whatever is in my power to impress upon the plant’s new owners how critical it is that those jobs remain here and continue to contribute to Vermont’s economy. We must also learn from the past and partner to assist companies such as this in growing and succeeding in Vermont. It is my belief that we, collectively, need to establish policies in order to make Vermont’s business climate more conducive to growth for large-scale employers such as GlobalFoundries and IBM. I look forward to working in conjunction with other state leaders to ensure that’s our state’s business future is on more solid ground.

"With today's announcement that ownership of IBM's Essex Junction facility will transition to GlobalFoundries, Vermont's workforce is once more presented with an opportunity for growth. I am pleased to learn that GlobalFoundries plans to retain the present workforce and continue operations in Vermont. It is my hope that with new management, energy and investment, GlobalFoundries's Vermont workforce will continue to distinguish itself as a leader on the global stage. I look forward to working with GlobalFoundries, its management and its employees to ensure that the Essex Junction plant continues to be a world class manufacturing facility.”

"Vermont has always had a special relationship with IBM. While this marks a new chapter for the plant, I appreciate that Global Foundries recognizes that the most valuable asset they are acquiring is the talented workforce in Essex. These are some of the most highly skilled workers in the entire nation, and I remain committed to working with them and the new ownership to keep an active and vibrant plant as part of Vermont’s economic landscape."

“After much speculation, the highly skilled employees at IBM Vermont now know with certainty that GlobalFoundries will purchase their extraordinary facilities,” said Welch. “What they know, what Vermonters know, and what GlobalFoundries will soon discover, is that the work force and facilities at the Essex Junction plant are second to none in quality, innovation, and productivity. I look forward to working with Governor Shumlin, IBM employees, and the state's business community to ensure that the plant continues to be a leader in semiconductor manufacturing.”

"Global Foundries plans to maintain the workforce and continue operations in Vermont, good news for the talented Vermonters employed by the plant and for our whole state. IBM has been a part of the Vermont fabric for decades, driving economic development and innovation. But we have felt the uncertainty regarding IBM's future in Vermont for the last several years, as its business model has changed. That is why it is very good news for Vermont's long-term future that IBM's facilities here will be acquired by GlobalFoundries, a successful and growing chip manufacturing company that views our highly-skilled workers and advanced R&D and manufacturing facilities as important to its strategic growth. We have learned in recent weeks that business at the plant is strong, and the plant is hiring more workers to meet demand. We expect that demand to continue and strengthen under GlobalFoundries."