Ex-Im Approves $1 Billion Direct Loan to Finance Export of U.S. Manufacturing Equipment to Germany
WASHINGTON, Dec. 13, 2012 /PRNewswire-USNewswire/ -- In a decision that will support nearly 10,000 high-tech jobs, the Export-Import Bank of the United States (Ex-Im Bank) has approved a $1.03 billion loan to GLOBALFOUNDRIES to finance the export of American-made semiconductor manufacturing equipment to Germany.
The transaction, which is Ex-Im Bank's third with GLOBALFOUNDRIES and its related entities, will support approximately 9,700 jobs, according to Bank estimates derived from Departments of Commerce and Labor data and methodology.
Four American exporters from California, Massachusetts, and Oregon will participate in the transaction.
Ex-Im Bank's credit will support the expansion of the GLOBALFOUNDRIES Fab 1 silicon-wafer-fabrication facility in Dresden, Germany. The expansion will increase the company's capacity to manufacture semiconductor products, which are critical components of personal computers, tablets, and smart phones.
"Our financing allows American manufacturers to capture a larger share of a growing market," said Ex-Im Bank Chairman and President Fred P. Hochberg. "The export sales will in turn support U.S. jobs and increase American competitiveness in a vital industry."
Launched in March 2009 and based in Milpitas, Calif., GLOBALFOUNDRIES is the second largest dedicated semiconductor foundry in the world. Its global footprint is supported by major facilities for research, development, and design enablement. GLOBALFOUNDRIES is owned by the Advanced Technology Investment Company.
Applied Materials Inc., one of the exporters involved in the transaction, is a global leader in providing innovative equipment to enable the manufacture of advanced semiconductors. Headquartered in Santa Clara, Calif., Applied Materials has more than 7,000 employees in the U.S., located primarily at corporate, manufacturing, and research-and-development facilities in California, Massachusetts, Montana, and Texas.
"The ability of our customer GLOBALFOUNDRIES to access this financing benefits Applied Materials' manufacturing and R&D in the United States, as well as our supply chain, at a time of tremendous global competition for high-tech jobs," said Mike Splinter, chairman and CEO of Applied Materials, Inc.
Atradius of the Netherlands is also lending to GLOBALFOUNDRIES as part of an export-credit-agency facility totaling $1.5 billion.
ABOUT EX-IM BANK:
Ex-Im Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. In the past five years (from Fiscal Year 2008), Ex-Im Bank has earned for U.S. taxpayers nearly $1.6 billion above the cost of operations. The Bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance and financing to help foreign buyers purchase U.S. goods and services.
Ex-Im Bank approved $35.8 billion in total authorizations in FY 2012 – an all-time Ex-Im record. This total includes more than $6.1 billion directly supporting small-business export sales – also an Ex-Im record. Ex-Im Bank's total authorizations are supporting an estimated $50 billion in U.S. export sales and approximately 255,000 American jobs in communities across the country. For more information, visit www.exim.gov.
SOURCE Export-Import Bank of the United States