As part of an agreement made with New York State and five leading international technology companies, Gov. Andrew Cuomo announced on Tuesday that 950 high-technology jobs would be coming to the lower Hudson Valley. The positions, which will be out of IBM’s East Fishkill and Yorktown offices, will assist in the development of the next generation of computer chip technology.
An additional 1550 high-tech positions will be created in Albany, Canandaigua and Utica as well as nearly 2000 construction jobs. The agreement will keep 2,500 existing jobs in the area.
The technology companies, Intel, IBM, GLOBALFOUNDRIES, TSMC and Samsung, have agreed to invest $4.4 billion in New York State, instead of with countries in Europe, Asia and the Middle East, who were also competing for the contract.
“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. “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.”
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.
“IBM continues to invest in New York because of the strong business climate and talent here, ”said Dr. John E. Kelly III, senior vice president and director of IBM Research.
Assemblyman Steve Katz, who lives in Yorktown, applauds the agreement. “Gov. Cuomo’s dedication to bring high tech jobs to the Hudson Valley and especially to Yorktown is commendable,” the assemblyman said. “I am grateful that many of those jobs will be coming to the IBM facility in Yorktown and will help continue the economic viability of Westchester.”
“This is really terrific news for the Hudson Valley. IBM has been such an economic engine for both this region and the state at large. IBM’s expansion and these 6,900 jobs statewide–950 of which are here in the Hudson Valley–will surely set the stage for New York to be a key leader in the nanotech industry,” said Assemblywoman Sandy Galef. “Business, higher education and government have all come together to make this happen here in our great state.”
“Obviously, nobody will be happier than me when these jobs actually come to my district,” said State Senator Greg Ball. “But I am cautiously optimistic today, and will fight to set a high and permanent standard that this widely acclaimed ‘deal,’ and these taxpayer investments, actually create American jobs, in New York.”
“As a community we are all starving for good economic news and this seems to be a real shot in the arm, especially for my district,” Ball added. “We need real jobs. My fear, and it is just an initial reaction given previous history, is that many of these large multinational corporations, and especially IBM, have a track record of grabbing taxpayer dollars while outsourcing American jobs. We really need to focus as a State on the small and new businesses that create the lion’s share of jobs while having a real and lasting commitment to the community.”
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, 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,”said Cuomo.
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.