IBM, Intel, Samsung Invest $4.4 Billion on Chip Development in N.Y.

 
 
By Nathan Eddy  |  Posted 2011-09-30 Email Print this article Print
 
 
 
 
 
 
 

Five companies, including Intel, IBM and three others, will invest $4.4 billion over five years in New York state.

Some of the world's largest semiconductor manufacturing companies, including IBM, Intel, Samsung, Taiwan Semiconductor Manufacturing Corp. (TSMC) and Globalfoundries are set to invest $4.4 billion over the next five years to create the next generation of computer chip technology in New York. The state secured the investments in competition with countries in Europe, Asia and the Middle East, according to a press release issued by Gov. Andrew Cuomo's office.

The agreements mark an "historic" level of private investment in the nanotechnology sector in New York, the governor's office noted. Research and development facilities will be located in Albany, Canandaigua, Utica, East Fishkill and Yorktown Heights. In addition, Intel separately agreed to establish its 450mm East Coast headquarters to support the overall project management in Albany.

The moves extend a trend toward establishing upstate New York as a hub of semiconductor manufacturing and research. Globalfoundries and IBM already have a strong presence there.

The investment in the state is made up of two projects. The first project, which will be led by IBM and its partners, will focus on making the next two generations of computer chips. These new chips will power advanced systems of all sizes, including, among other things, computers and national security applications. This new commitment by IBM brings its total investment in chip technology in New York to more than $10 billion in the last decade.

The second project, which is a joint effort by Intel, IBM, TSMC, Globalfoundries and Samsung, will focus on transforming existing 300mm technology into the new 450mm technology. The new technology would produce more than twice the number of chips processed on today's 300mm wafers, a joint statement by the companies projected. In addition, the companies will support a $15 million fund to increase the role of minority and women owned businesses.

"The Global 450 Consortium is a critical element to moving the semiconductor industry to next generation wafer size. This new technology will reduce the cost of production, increase productivity for manufacturers and reduce our environmental footprint on a per chip basis, Paul Otellini, Intel's president and CEO, said in a statement. "The involvement of the College for Nanoscale and Science Engineering and the State of New York will enable the industry to meet its goals."

The investment in these efforts will result in the creation and retention of approximately 6,900 jobs, Cuomo's office said. That number includes 2,500 additional high-technology positions comprising of 800 positions at CNSE Albany NanoTech Complex 950 at IBM in Yorktown Heights and IBM in East Fishkill, 450 at the State University of New York (SUNY) Institute of Technology (SUNYIT) in Utica and 300 at the College of Nanoscale Science and Engineering (CNSE) Smart System Technology & Commercialization Center in Canandaigua.

No private company will receive any state funds as part of the agreement. To support the project, the state will invest $400 million in the CNSE, including $100 million for energy efficiency and low cost energy allowances. In addition, approximately 1,500 construction jobs are expected to be created in Albany and 400 in Utica. As a result of the investment 2,500 existing jobs in Albany, Canandaigua and East Fishkill will be retained.

"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," Cuomo said in a statement. "IBM, which is celebrating 100 years in New York, Intel, which is making its most significant investment in New York, as well as TSMC, Globalfoundries and Samsung now recognize that the state is on its way to becoming a premier location for jobs, which is why these companies are making this major investment."

 
 
 
 
Nathan Eddy is Associate Editor, Midmarket, at eWEEK.com. Before joining eWEEK.com, Nate was a writer with ChannelWeb and he served as an editor at FierceMarkets. He is a graduate of the Medill School of Journalism at Northwestern University.
 
 
 
 
 
 
 

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