SAN FRANCISCO—A group of semiconductor companies led by Intel Corp. and IBM Corp. will invest $4.4 billion over five years to create a semiconductor research and development hub in New York to develop next-generation chip technology, New York Governor Andrew M. Cuomo said Tuesday (Sept. 27).
The investment is centered around two projects, one led by IBM and its partners that will focus on building the next two generations of semiconductors, and another led by Intel that will focus on developing process technology for 450-mm wafers, dubbed the Global 450 Consortium, according to the statement issued by Cuomo's office.
Intel (Santa Clara, Calif.) is joined in the 450-mm development effort by IBM, Taiwan Semiconductor Manufacturing Co., Gloabalfoundries Inc. and Samsung Electronics Co. Ltd., according to the statement. Intel separately agreed to establish its 450-mm East Coast headquarters to support the overall project management in New York's capitol, Albany, according to the statement.
A spokesman for IBM said IBM
and its partners in the Common Platform process technology alliance,
Samsung and Globalfoundries, would focus research on developing 22- and
14-nm chips. Further details of the development work will emerge at a
later date, the spokesperson said. Of the $4.4 billion in total
investment in the two R&D projects, $3.6 billion will come from IBM,
said the spokesperson. According to Cuomo's statement, this new
commitment by IBM brings its total investment in chip technology in New
York to more than $10 billion in the past decade.
No private company will receive any state funds as part of the agreement, according to the statement from Cuomo. It is unclear if the companies involved will receive tax breaks or other incentives to locate the projects in New York. To support the project, New York will invest $400 million over five year in the SUNY College for Nanoscale and Science Engineering (CNSE) in Albany, including $100 million for energy efficiency and low cost energy allowances, according to Cuomo's office.
New York secured the investments in competition with countries in Europe, Asia and the Middle East, according to Cuomo's statement.
According to Cuomo's office, the two R&D programs will create about 4,400 jobs and result in the retention of another 2,500 existing jobs in upstate New York. The roughly 4,400 jobs that will be created include about 2,500 high-tech jobs at CNSE Albany NanoTech Complex, IBM., SUNY Institute of Technology in Utica and CNSE's Smart System Technology & Commercialization Center in Canandaigua, according to the statement.
"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," Gov. Cuomo said.
Some chip makers, including those involved in the Global 450 Consortium, are at the early stages of developing process technology to migrate from building chips on 300-mm silicon wafers to 450-mm wafers, which will allow them to produce more than twice as many chips per wafer. Equipment vendors initially resisted the migration to a new wafer size, but have gradually come on board and begun creating early-stage production tools.
Intel President and CEO Paul Otellini said in the statement released by Cuomo's office that the Global 450 Consortium is a critical element for moving the chip industry to the 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," Otellini said.
Give the name of any corporate citizen that is free of wrong doing, and let that corporation throw the first stone.
I read these concerns, but if one is to object about IBM, we would have to object of all.
Well, honesty requires that I admit that northern VA is rather overcrowded, but yes, the Blue Ridge is magnificent. You also hit on one of Tx's Achilles' heels: its weather. I lived near Houston 14 years, and the weather was, um, rough. There are other reasons, though that I like both Va and Tx, but they are related to gun ownership policies and other matters that aren't germane here.
Overall, though, this development in NY is a net asset to the state, and by "the state" I mean the people of the state. There will be decent jobs, and the support businesses that go with the decent jobs. That some wheeling-dealing went on is certain, but at least NY didn't sink $500M into smoke and solar mirrors: IBM and Intel are hardly fly-by-night.
You're right - what I've seen of Virginia has been really nice - I used to go cycling on the blue ridge somewhat regularly when I was a grad student. I'd stand by my assessment of Texas, though ;-) A good business and fiscal climate doesn't compensate for the real, uh, climate - at least in my mind.
By the way, NY has actually attracted at least one business OUT of TX - Sematech relocated to Albany a year or so ago.
ihaller, no, not really. It would strike me as more than strange if a company trotted out the political leanings of the people who ran the place, at least in an engineering firm, when interviewing or hiring. My response to this thread was simply that I didn't think NY was any company's first choice of a home for a large investment, unless, like IBM, they already had a very large investment in place. I then listed the first criteria that came to mind, which included that the state be right-to-work, which strikes me as close to a basic right for the worker, as well as eliminating union issues for the company. (Look at what Boeing is going through with an expansion plant in South Carolina.) Three other posters list objections to NY: resistion mentions a lack of "cultural diversity", a chimera to my mind; MLinder mentions taxes, a real enough factor; and pinhead makes a sweeping generalization about right-to-work states that seems hardly fair. For that matter, NY may have tough winters, but the state has some beautiful landscape as well. In the end, though, no single factor will guide someone to move to a new job. The person will weigh up the pros and cons against their particular priority list, and made a decision. I suspect that scenery (or right-to-work, for that matter) are anyone's highest priority.
Bob: You'll be surprised how many inventive engineers (and scientists, machinists, etc) would reject a job offer if it was tied to ideology. I, for one worked for IBM (1961 - 1993 and happily after elsewhere to age 73), and never missed the absence of unions, but together with the vast majority of my colleages greatly appreciated that management did not try spoonfeeding of anti-union propaganda. So let's just wish Intel, IBM, Samsung and other members of the consortium success with their new facility.
Actually the $4.4 billion, includes an upgrade that IBM would have had to do anyway to remain competitive at 22 nm. The newly committed resources from all parties, I speculate, is on the order or $400M in subsidies and $400M in investment from the parties of the Global 450mm Alliance. NY has succeeded because has committed massive subsidies for Buildings, Tools and assistance to corporations.
The grand total for subsidies now approaches or exceeds $4.5 billion in 10 years in three fronts: IBM (~$1.5 billion), Globalfoundries (~1.5 billion) and SUNY CNSE (~$1.5).
Development costs have been matched at 50% through SUNY CNSE; the CNSE facility, before the new funding (~$1 billion) had deployed until 2011 about $7.5 billion in 10 years.
It has been a very determined effort to save/create jobs, regain relevance, save IBM Semis and use the university to funnel funds to an industrial development consortium.
It has worked, except for the fact that without periodic injections of job saving and job creating subsidies every 2 years; it could not fly on its own.
Now that Intel seems to be on-board for 450 mm, and with TSMC and Samsung joining; there is the hope that someday this industry will be self-sustaining again in NYS.
The evolution of the process is a really interesting story of political games, strategic decision, intrapreneurship, university role redefinition and unwavering commitment of public funds.
The process of NY semiconductor re-industralization seems to be working and to be beyond minimum sustaining critical mass.
I'll take your word on it that NY is business-friendly: I don't have any information one way or the other. Being IBM in NY doesn't hurt any, and indeed they have impressive facilities there. Another good point you make is that the fab workers are not bolt-twisters. But as far as right-to-work states go, that would include both Texas and Virginia. Neither are dumps by any means: quite the contrary. Both have state surpluses, and Texas doesn't have a state income tax. If you haven't seen the Blue Ridge Mountains, you have missed something, but that can be easily remedied. And last I checked, Virginia has a coast. (Who is "us", anyway?) As an aside, a car ride down the Skyline Drive, followed by the Blue Ridge Parkway will reward you with vistas of heart-rending beauty.
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