THE FUTURE OF TECH VALLEY

F. Michael Tucker

Center for Economic Growth

Prepare: Assist communities in achieving their desired economic growth

Attract: Create opportunities for technology investment and expansion in Tech Valley

Grow: Assist area companies with business development strategies for accelerated growth

Six Industry Sectors of Focus

Advanced MaterialsPlastics, Composites and Ceramics

BiotechnologyLife Sciences, Drug Delivery and Tissue Engineering

Clean Tech and Renewable EnergySolar, Wind, Fuel Cells, Smart Grid

Homeland Security / DefenseCommercialization of Security Technology and Products

Information Technology

Software and Telecommunications

NanotechnologySemiconductors and Nanoelectronics

1995: Responded to Samsung RFP for Chip Plant

1997: CEG/RPI Study identifies 5 emerging industry sectors

1998: CEG with National Grid, spearheads initiative to market region

1999: 18 county region of NY bands together as “Tech Valley”

2001: U Albany announces Center of Excellence in Nanoelectronics; STEP Park established

2002: “NY Loves Nanotech” becomes marketing umbrella, begin sponsoring SIA Dinner

2003: Begin regional & statewide education programs

2004: First Nanotechnology college in the world (CNSE) opens at U Albany

2007: RPI Computational Center for Nanotechnology Opens

2008: SEMICO Impact Study

2006: AMD announces plans to locate fab in NY; CEG diversifies marketing outreach

20092005: Albany Nanotech… Over $5B invested

GLOBALFOUNDRIES Breaks Ground

Where we were, a look-back: 1995 - 2009

Significant growth in High-Tech Industries• GLOBALFOUNDRIES; GE’s Battery, Renewable Energy & Imaging• IBM’s investments at College of Nanoscale Science & Engineering• Growth within regional advanced manufacturing industry

Opportunity: Career Jobs for Students & Keep Students Local• How: advocate education & career paths before college

and career decisions are made

Opportunity breeds Opportunity

IBMInvests or announced plans to invest over $2 billion in regional

initiatives (Nanotech Packaging Center, Nanotech /Semiconductor

programs at CNSE, RPI Supercomputer)

GE$165 million Digital Mammography/Imaging Center

$150 million Wind Institute and Turbine Service Center

$100 million Advanced Battery Manufacturing Center

$330 million investments to expand Global Research HQ

M + W USAAnnounced in August it is moving it’s headquarters to the

Watervliet Arsenal, creating 270 jobs

International SematechPlans to move its headquarters to the College of Nanoscale

Science and Engineering, creating 100 new high-tech jobs and investing

$80 million in the region

Angio DynamicsBuilt it’s new headquarters to Latham, NY in May, bringing 70 jobs

Regional Developments

GLOBALFOUNDRIES: Fab 8 ConsturctionMalta, NY

The world’s most advanced foundry• Luther Forest Technology Campus• $4.2+ billion investment• Expected to come online in 2012• Over 1,400 direct jobs• More than 5,000 spinoff jobs• Designed for 28/22nm process tech• 35,000 WSM once fully ramped• Leverages strong regional US talent and

shared experiences from Dresden• Integrated global network of fabs

Fab 8:

300mm Manufacturing

GLOBALFOUNDRIES: Fab 8 PlanMalta, NY

GLOBALFOUNDRIES: Fab 8Malta, NY

GLOBALFOUNDRIES: Fab 8Malta, NY

GLOBALFOUNDRIES: Fab 8Malta, NY

GLOBALFOUNDRIES: Fab 8Malta, NY

What will Tech Valley look like in 10-15 years??

Dresden, Germany: Industry Growth

Dresden, Germany Fab1:Human Resources

Derivative employment 44,000 Direct Employees 2,600Average Age 38

Source: GlobalFoundries Dresden, Germany, Data as of Q1 2009

Dresden, Germany: Industry Clustering

• Organizational agility• Streamlined decision-making• Harnessing innovation• Unlocking customer potential

Key Attributes

Global mindset Interdisciplinary Tech + business

acumen Agile & creative Customer-centric Spirit for competition Driven by results Process-oriented Entrepreneurial

A Knowledge Driven Workforce

Jobs & Educational Backgrounds in Demand

35% Fab Operators- Role: Fab Operations- Degrees: Associates, Electrical, Instrumentation, Semiconductor Programs

25% Technicians- Roles: Fab Operations Engineering, Manufacturing Support, Site Services- Degrees: Associates, Electrical, Instrumentation, Semiconductor Programs

30% Engineering- Roles: Fab Operations Engineering, Manufacturing Support, Site Services- Degrees: EE, Materials Science, Chemistry, Physics, Math

5% Management- Roles: Manufacturing Support, Site Services, Fab Ops- Degree: Largely Engineering & Technical

5% Administrative- Roles: HR, Finance, Legal, PR, Marketing- Degrees: BA, MA, MBA, PhD

Typical Fab Workforce Breakdown

GLOBALFOUNDRIES Fab 8: Hiring Timeline

Other Opportunities:

Supply Chain and other Support jobs

• Fab garment cleaning• Computer sales maintenance• Warehousing• Delivery service• Chemical disposal• Satellite equipment offices• Specialty products• Maintenance• Training• Private security

Workers will need higher level skills than in the past:• Critical thinkers• Analytical skills• Problem solving skills• Diversity in thought and with respect to others• Trade specific training a plus

Need for 2 year degrees will outpace 4 year degrees• STEM focus, beginning in grade/middle school

Government needs to align with future needs

Businesses, Government and Education leaders need to work together

What can we do?

MBA Hiring return to Pre-Recession Levels

Hiring for Financial MBAs increased 22% in 2010 and is expected to increase another 10% in 2011

Hiring of Consulting MBAs increased 19% in 2010 and is expected to increase another 37% in 2011

Reports Bloomberg BusinessWeek

CONTACT Information

• Don Purdy, Program Director

• E-mail: dpurdy@uamail.albany.edu

• P: 518.442.4964 | F: 518.442.4975

• Twitter: @UAlbanyMBA

• LinkedIn: www.linkedin.com/profile/edit?trk=hb_tab_pro_top

March 21, 2011 / Albany.edu/business/weekendMBA_index.shtml

MARK Your Calendars!

• Monday, April 4, 12:15 p.m.

• Business Leadership

• Dr. Edward J. Pavur, Jr.• Management consultant,

Weekend MBA Program instructor

March 21, 2011 / Albany.edu/business/weekendMBA_index.shtml

Your Thoughts

&

Questions?

The Center for Economic Growth

F. Michael TuckerPresident & CEO

miket@ceg.org