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Consumer electronics industry

IBM to Build $1.9 Billion Chip Research and Manufacturing Center in New York

Strategic Insights

— 1 min read

New York Governor George Pataki announced on Wednesday that IBM plans to build a $1.9 billion chip research and manufacturing center in East Fishkill, New York. The new facility will be an expansion of IBM's existing plant at the Hudson Valley site, which was completed in 2002. This is the second major chip factory announcement in the United States in the past year, following Texas Instruments' plan to build a plant in Richardson, Texas.

Key Takeaways:

  • IBM will partner with Advanced Micro Devices Inc., Sony Corp., Toshiba Corp., Samsung Electronics Co. Ltd., Infineon Technologies AG, and Chartered Semiconductor Manufacturing Ltd. on the $1.9 billion project.
  • The State of New York will provide financial incentives to the project, although the exact amount was not specified.
  • The new facility will process the latest generation of silicon wafers that are 300 millimeters (about 12 inches) in diameter.
  • The construction of the new plant is expected to begin in the second half of this year, with completion estimated to take more than two years.
  • The new plant is expected to contribute to the development of the next-generation Cell processor, a cooperative effort between IBM, Sony, and Toshiba to create a high-performance processor for advanced game control consoles, digital television sets, computers, and other products.
  • Sony has already agreed to invest $350 million in manufacturing capacity for the Cell chip.
  • The Cell processor is expected to be unveiled in prototype form next month.

Statistics:

  • $1.9 billion: The estimated cost of the new IBM chip research and manufacturing center.
  • 300 millimeters (about 12 inches): The diameter of the silicon wafers to be processed by the new facility.
  • $350 million: The amount invested by Sony in manufacturing capacity for the Cell chip.

Sources:

  • "Pataki on IBM expansion,"By Kirk Ladendorf, Austin American-Statesman, [No date available]
  • "Texas Instruments plans Richardson plant," Austin American-Statesman, [No date available]
  • Press release: Texas Instruments, "Texas Instruments Announces Plans for Semiconductors Manufacturing Facility in Richardson, Texas" [No date available]

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