Governor Pataki Announces Historic $2.5 Billion in Investments by IBM Global High-Tech Leaders

ALBANY, N.Y. - 05 Jan 2005: Governor George E. Pataki today, in his 11th Annual State of the State Message, announced more than $2.5 billion in historic investments in Upstate New York by an IBM-led consortium of high-tech companies from across the globe - marking another step in the Governor's goal of making New York a worldwide leader in university-based research, business development, and job creation.

In one of the most significant commitments in the State's history, IBM -- along with six global giants that include Sony, Toshiba, Samsung, Infineon, AMD, and Charter -- will spend $1.9 billion on nanoelectronics manufacturing and development in East Fishkill, New York.

"New York State has just scored two major victories to seal its role as an international powerhouse in high-technology research and economic development," Governor Pataki said. "We are proud and gratified that industry leaders such as IBM and Sony have recognized that New York is fast becoming a leading destination for new high-tech related investment, economic growth and job creation. The smart investments that we have made in New York's future as a high-tech leader are clearly paying off and producing major job-creating dividends for our economy."

This historic investment includes Sony's investment into the new IBM leading edge 300mm wafer chip making plant, while IBM and its six international partners will work jointly on some of the most advanced semiconductor development programs in the world.

Governor Pataki agreed to commit $150 million in State support for the two projects, in exchange for the commitment by this unparalleled private-public partnership to create 750 high technology jobs in the Hudson Valley, from East Fishkill to Albany.

State Senate Majority Leader Joseph L. Bruno said, "The commitment made by global giants like IBM and Sony to invest in our state is another important step in our efforts to establish New York State as a national and global competitor for high tech jobs and biotechnology research and development. These new development programs, the expansion of the Hudson Valley Chip Plant, and the new R&D center at the Albany Center of Excellence will keep New York on the cutting edge of emerging technologies, strengthen our economy and create good paying jobs for the people of the state of New York."

In addition, IBM and a group of the largest equipment suppliers in nanoelectronics that includes TEL and Applied Materials intend to invest, pending completion of contract negotiations, an unprecedented $450 million to expand the research and development capabilities of the Albany Center of Excellence in Nanoelectronics, a shining example of the value of developing a high tech economy.

Dr. John E. Kelly III, IBM Senior Vice President of Technology, said: "It's been extremely exciting to see New York State become the center of innovation for leading edge semiconductor technologies. We are looking forward to the advancements and breakthroughs that are sure to result from our collaboration with New York State, the Albany Center of Excellence in Nanoelectronics, Albany NanoTech, and all of our distinguished high-tech partners."

Alain E. Kaloyeros, Ph.D., Executive Director of the Center of Excellence in Nanoelectronics and Vice President of the College of Nanoscale Science and Engineering at UAlbany, said, "I would like to thank Governor Pataki and IBM for making this historic investment in the future of New York's high technology economy. The innovations that will arise from this partnership will reap substantial benefits for the citizens of New York for years to come."

Construction on the new IBM 300mm wafer expansion is scheduled to be complete in the second half of 2005. The expanded facilities in East Fishkill will combine certain IBM chip making breakthroughs on 300 mm (12inch) wafers, with features more than 1,500 times thinner than a human hair.

The unprecedented expansion of the R&D capabilities of the Albany Center of Excellence will create the most advanced 300mm research facility at any university in the world. Scientists and researchers from IBM, TEL, Applied Materials, the Albany Center of Excellence will jointly collaborate for the first time anywhere on the demonstration and deployment of computer chip technologies at the nanoscale--at line-widths more than 3,100 times thinner than a human hair.

New York State has made significant investments to support research, development and commercialization of nanoelectronics, including those at the Albany Center of Excellence in Nanoelectronics, the IBM East Fishkill chip-fab, the International SEMATECH North consortium and the Tokyo Electron Limited research consortium.

Building upon the State's efforts to promote a thriving high-tech economy in New York, the Governor's Budget provides strong support for New York's High-Tech/Biotech Efforts to encourage new investment and job creation in emerging high-tech and biotechnology industry in New York.

Russell W. Bessette, M.D., Executive Director of the New York State Office of Science, Technology and Academic Research (NYSTAR), said, "Under Governor Pataki's leadership, the Center of Excellence initiative has become the most critically important component of the State's high technology economic development efforts. The Governor has enabled our world-class universities to become key partners in helping to create a vibrant technology-based economy well into the foreseeable future."

Governor Pataki and the Legislature have advanced several major initiatives to expand high technology and biotechnology business and job-creation opportunities in New York. The Governor's Centers of Excellence initiative, along with Strategically Targeted Academic Research Centers and Advanced Research Centers, focus on critical emerging technologies that are expected to become major high-tech growth areas. Each Center is designed to complement other specialized academic centers in a seamless network of high-tech research and economic development.

One of the largest global centers for nanotechnology, Albany NanoTech is home to the College of Nanoscale Science and Engineering and the New York State Center of Excellence in Nanoelectronics of the University at Albany-State University of New York. Its 450,000 square foot complex, including the only 200mm/300mm wafer facilities in the academic world, encompasses nanoelectronics, system-on-a-chip technologies, biochips, optoelectronics and photonics devices, closed-loop sensors for monitoring, detection, and protection, and ultra-high-speed communication components.

IBM is a leading technology company in the creation, development and manufacture of the industry's most advanced information technologies, including computer systems, software, networking systems, storage devices and microelectronics.

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