New York’s governor, Andrew Cuomo has made it known that the International Business Machines Corp. and Intel Corp. plan to invest $4.4 billion over a course of five years in order to create a hub for the next-generation computer chip technology.
After the official announcement, the New York Stock Exchange reported that IBM shares rose to $4.84 (2.8%) to $179.35. Prior to the announcement, the shares were up by 19% this year. At the NASDAQ Stock Market, Santa Clara based, Intel rose 60 cents (2.7%) to $22.84 in trading.
IBM is believed to be contributing $3.6 billion to develop computer chips using 22-nanometer and 14-nanometer process technology. In layman’s terms, a nanometer is one billionth of a meter and measures the size of transistors in a chip. The lower numbers are thought to be an indicator of a more advanced technology.
On the other side of the financial equation are Intel Corp., IBM, Globalfoundries Inc., Taiwan Semiconductor Manufacturing Co., and Samsung Electronics Co., which will focus on transforming a 300-millimeter water technology into 450-millimeter technology, with the end result of producing twice the amount of chips.
During a press conference in Albany, senior vice president and director of research at Armonk, John Kelly stated this recent conglomeration is about the “computing systems IBM and others will construct using advanced technologies.” He continued, “This will create computers that will help doctors diagnose advanced disease.”
To prepare New York with the abilities for taking on such a monumental project, the state plans to invest $400 million into the State University of New York College of Nanoscale Science and Engineering. The university is located in Albany, a city in the northern part of the state.
Although, the $4.4 billion investment is a substantial amount of change given today’s economy, this project is believed to have created an estimated 6,900 jobs in the state, with 2,500 in the technology sector.
“This unprecedented 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 in a recent statement. Money will also be invested into the research and development facilities located in Canandaigua, Utica, Yorktown Heights and Fishkill.
Cynthia Wright is an avid lover of all things geeky. When she isn’t freelancing, she can be found on her blog BGA Life and on Twitter at @cynisright.