According to the latest news on the Web, New York's Empire State Development Co. and Public Authorities Control Board have recently approved the plans to transfer $650 million in incentives to the Foundry Company, Advanced Micro Devices Inc.'s manufacturing spin-off.

The funds were given to AMD back in 2006 and are to be used for the construction of a 300-millimeter wafer fabrication plant in Saratoga County. About two weeks ago, the board held a meeting during which it approved $1.2 billion in state incentives (a combination of tax breaks and cash) to be offered for the building of the plant. The terms of the original grant imply that the construction of the plant should begin before July 2009.

As many of you already know, back in October, AMD signed a $2.1 billion deal according to which it is to spin-off its manufacturing operation arm into a new company, called The Foundry Co. Shares of the entity are divided between AMD, Advanced Technology Investment Co. in Abu Dhabi, United Arab Emirates, and Mubadala Investment, an investment arm of the Abu Dhabi government.

As previously reported, the The Foundry Co. announced its plans to build a new chip plant in the state of New York, while also looking forth at expanding some of its existing plants in Dresden, Germany. According to AMD, the fact that the incentives have been transferred by the state government creates a starting point for the move, and the chip manufacturer expects construction to start next year.

The new plant is expected to have 1.2 million-square-foot and to cost around $4.6 billion. When at full capacity, the plant should employ a number of 1,400 workers. It will be in the Luther Forest Technology Campus, about 10 miles north of Saratoga Springs.