Governor Andrew M. Cuomo today announced that New York State has entered into agreements providing for investments valued at a total of $4.4 billion over the next five years from five leading international companies to create the next generation of computer chip technology.
The five companies involved are Intel, IBM, GLOBALFOUNDRIES, TSMC and Samsung.
The agreements mark an historic level of private investment in the nanotechnology sector in New York. 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.
"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," Governor Cuomo said. "IBM, which is celebrating 100 years in New York, Intel, which is making its most significant investment in New York, as well as TSMC, Global Foundries 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. In the last nine months, my administration has worked to create a more confident environment for doing business in New York, and major deals like this one prove that the state is truly open for business."
The investment in these two efforts will result in the creation and retention of approximately 6,900 jobs. That number includes 2,500 additional high-technology positions comprising of:
800 at CNSE Albany NanoTech Complex
950 at IBM - Yorktown Heights and IBM - East Fishkill
450 at SUNY Institute of Technology (SUNYIT) in Utica
300 at CNSE's Smart System Technology & Commercialization Center in Canandaigua
In addition, approximately 1,500 construction jobs will 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.
No private company will receive any state funds as part of the agreement. To support the project, New York State will invest $400 million in the SUNY College for Nanoscale and Science Engineering (CNSE) in Albany, including $100 million for energy efficiency and low cost energy allowances. The state investment in CNSE will be made over a five year period. The state investment will be directed entirely to CNSE, and all tools and equipment acquired through the investment will be owned by CSNE.
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.
The second project, which is a joint effort by Intel, IBM, TSMC, Global Foundries and Samsung, will focus on transforming existing 300mm technology into the new 450mm technology. The new technology will produce more than twice the number of chips processed on today's 300 mm wafers thus lowering costs to deliver future generations of technology with greater value and lower environmental impact.
This investment will have other beneficial economic impacts in New York. The project will include a private "Made in NY" initiative to support the potential purchase of $400 million in certain tools and equipment from companies around New York State to create, attract, and retain manufacturers and suppliers across the state.
In addition, the companies will support a $15 million fund to increase the role of minority and women owned businesses. These technology developments may facilitate the possibility of building a 450mm plant in New York state. These plants are projected to cost in excess of $10 billion each.