IBM, Intel Start $4.4 Billion Chip Venture in New York

Kudos to IBM, Intel and New York state for putting together a deal that will make upstate New York the center of R&D work for chip production on 450-mm and the development of 22- and 14-nm process technology for IBM's so-called "fab club," the Common Platform Alliance. According to New York Governor Andrew Cuomo, the deal, which involves $4.4 billion of investment, will create about 4,400 jobs and help the region retain another 2,500. Many of those jobs might just have easily have ended up in Taiwan, South Korea, Abu Dhabi or elsewhere. The deal is a coup for New York, which is presumably offering the companies tax breaks or other incentives to locate the projects there. (New York state itself is kicking in some $400 million over five years, but Gov. Cuomo made it clear in a statement announcing the projects that no private company will receive any state funds as part of the agreement.) Albany, already home to the semiconductor research consortium Sematech, the Albany Nanotech Complex and, soon, the Global 450 Consortium, increasingly appears to have surpassed the Silicon Valley as the place to be for semiconductor industry R&D. [More]