Intel, IBM Among Five to Pump $4.4 Billion into Chip Venture in New York
Backers include Globalfoundries, TSMC and Samsung for projects to develop next two generations of computer chips and upgrade wafer manufacturing technology.
Five computer chip industry heavyweights said that they will invest some $4.4 billion over the next five years into developing the next two generations of computer chips and upgrading wafer manufacturing technology at plants located in upstate New York.
The companies involved include Intel Corp., IBM Corp., Globalfoundries Inc., Tiawan Semiconductor Manufacturing Company (TSMC) and Samsung.
The funds are pointed at two projectsone venture, led by IBM, to develop the next two generations of computer chips, and a second, supported by all five companies, will concentrate on moving existing 300mm wafer manufacturing technology to the more advanced 450mm technology. The latter technology produces twice the number of chips processed on today's 300mm wafers.
To support the project, Intel agreed to set up its 450mm East coast headquarters in Albany, the company said.
Officials said that the two projects will create nearly 7,000 jobs, including 2,500 high technology positions and 1,900 construction jobs, at five locations in upstate New York. In addition, the projects will retain some 2,500 existing jobs in three upstate cities.
"This unprecedented private investment in New York's economy will create thousands of jobs and make the state the epicenter for the next generation of computer chip technology," said Governor Andrew M. Cuomo in a statement.
Cuomo said that over a five-year period New York State will direct $400 million in the SUNY College for Nanoscale and Science Engineering (CNSE) in Albany, 25 percent of which will be allotted for energy efficiency and low cost energy allowances.
The project also includes a private "Made in NY" branding and marketing initiative to support the potential purchase of $400 million in tools and equipment from companies around New York State, and a $15 million fund set up by the backers to boost the role of minority and women-owned businesses in the state.
Officials said that no private company will receive any state funds as part of the agreement.
IBM, which has operated manufacturing and research and development facilities in New York State for many years, has invested some $10 billion into chip technology in the area in the last 10 years. By comparison, the project represents Intels initial investment in the State of New York.
"This is our first major investment in the State of New York and we commend Governor Cuomo for creating a business-friendly environment to foster growth and to make New York a nationwide leader," said Brian Krzanich, Intel manufacturing and supply chain senior vice president and general manager.
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