ALBANY, N.Y., July 16, 2008 – Significant new investments by IBM and the state of New York will accelerate its leadership in nanotechnology research and development and create up to 1000 new high-tech jobs upstate, New York Gov. David A. Patterson announced.
The state will provide a total of $140 million in economic development grants, leveraging more than a 10-to-1 private investment of $1.5 billion from IBM.
The investment will go toward three separate and complementary components of a comprehensive project, supporting the nanotechnology chip computer activities of IBM: the expansion of IBM’s operations at the College of Nanoscale Science and Engineering at the University at Albany (Albany NanoTech), the creation of an advanced semiconductor packaging research and development center in upstate New York, and the upgrading of IBM’s East Fishkill facility in Dutchess County.
“The positive effects of this critical investment will be felt for a generation,” said Gov. Paterson.
The three projects will collectively advance “nanochip” technologies, including cutting-edge chip design, demonstration, and testing which all takes place at Albany NanoTech. Nanochips each carry billions of transistors and applications include high-end personal computers and laptops; high-performance servers and supercomputers; virtual reality and advanced electronic games; medical devices and components; ultra-fast telecommunications devices; “sensor-on-a-chip” systems for anti-terrorism and “soldier-in-the-field” remote monitoring and sensing.
“These new investments will spur continuing advancements in nanotechnology and semiconductor research and development, including new efforts in semiconductor packaging, propelling IBM chip innovations and solidifying the state's reputation as a high-technology leader,”said John E. Kelly III, IBM senior vice president and director of research. 
The College of Nanoscale Science and Engineering of the University at Albany in New York.
IBM has agreed to expand its operations at Albany NanoTech and the State will also provide $25 million to acquire state-of-the-art infrastructure and advanced semiconductor tooling at that location, resulting in the creation of 325 new research and development jobs.
To build on the successes at Albany NanoTech, the state will invest $50 million toward the establishment of a new 120,000-sq-ft semiconductor packaging center in upstate New York. This center will be established by the College of Nanoscale Science and Engineering, with IBM conducting operations at the site.
Rensselaer Polytechnic Institute (RPI) will also be a research partner in the new packaging facility, which is expected create over 675 jobs.
This agreement will also help IBM retain more than 1000 key semiconductor jobs at its East Fishkill plant in Dutchess County. The company has agreed to provide significant resources to upgrade that site with the latest technology. The state will additionally provide $65 million toward that effort.
IBM intends to extend its investments and semiconductor research and development partnership alliances to meet the increasing challenges of producing future semiconductor chips with 45-nanometer (one billionth of a meter), 32 nm and smaller geometries, and to develop the required complementary advanced packaging technologies. Semiconductors have become increasingly sophisticated to meet growing demand for advanced computer systems, telecommunication devices and highly complex and multifunctional digital consumer electronic products.
For more information, visit: www.ny.gov/governor