UPDATE: $4.4B Albany nanotech investment to add hundreds of local jobs

Gov. Andrew Cuomo announces that Intel, the state and other partners will bring the next generation

Gov. Andrew Cuomo announced this morning that Intel, a leading computer component manufacturer, the state and other partners will invest $4.4 billion to bring the next generation of wafer chip manufacturing to Albany’s College of Nanoscale Science and Engineering.

Cuomo spoke at a convention of 10 regional economic development councils seeking to stimulate the state’s economy. Former President Bill Clinton is the keynote speaker.

“Today marks a massive step forward in the Capital Region’s stunning ascension as the global epicenter in semiconductor research. This model private-public investment builds on our success with 300 mm technology, and ensures that New York will lead the industry for decades to come, bringing more and more economic vitality and high-quality jobs to upstate New York,” said Sen. Charles Schumer, D-N.Y.

The investment promises to create 4,400 new jobs and retain 2,500 jobs in New York over the next five years.

“These companies could have gone anywhere on the globe,” Cuomo said, arguing that New York was chosen because of the business friendly environment that is being fostered now.

The private investment will be accompanied by $400 million in funding for the SUNY College for Nanoscale and CScienece Engineering in Albany. Cuomo characterized the state’s role in this project as the smallest state government subsidy per job ever.

In Albany there will be 800 high-tech jobs and 1,500 construction jobs created. The investment by the private companies will also ensure that 900 jobs are retained in the area.

“We worked hard to get to this point, where the Capital Region’s economic future is not a plan or a proposal or a dream — it is a reality with its own internal energy momentum — and we have over four billion reasons to celebrate today,” added Schumer. “I applaud Governor Cuomo and the indefatigable Dr. Alain Kaloyeros for their vision and I want to welcome with open arms Intel to the Empire State. This incredible investment by Intel, GlobalFoundries, IBM, Samsung and TSMC means the sky is truly the limit for chip research and manufacturing in the Capital Region.”

Schumer said the $4.4 billion investment is by Intel, GlobalFoundries, IBM, Samsung and TSMC.

Ajit Manocha, CEO of GlobalFoundries, said, “The unique mix of industry and technology partners located in New York is a key component of our strategy of expanding our local operations, including the Fab 8 campus in Malta, which will be the world’s most advanced semiconductor fab when it is completed in early 2013.

“Governor Cuomo and the state of New York are dedicated to creating a sense of confidence that encourages businesses to invest in advanced manufacturing technology and development to create jobs and secure New York’s role in driving the 21st century global economy.”

The next generation of chip is the 450-millimeter wafer. Current generation is the 300-millimter wafer.

Meanwhile, Clinton will appear at noon at the Empire State Plaza Convention Center.

Michael Castellana, CEO of SEFCU and co-chair of the Capital Region’s Economic Development Council, said he expects Clinton to discuss “lessons learned and the need for partnerships” in achieving economic development results.

“His accomplishments are somewhat legendary and he is very motivational,” Castellana said.

Clinton will be waiving his speaking fee at the convention, which will feature a series of panel discussions and workshops. Members of the general public who do not already have a ticket will not be able to attend.

Castellana said he believes Clinton is here at the request of Gov. Andrew Cuomo, who established the regional councils earlier this year. “Given the relationship between the governor and the president, that is the key behind it,” he said.

Cuomo served in Clinton’s administration as secretary of Housing and Urban Development from 1997 to 2001.

The councils are competing for $200 million in economic development funding from the state. They will also be eligible to tap into $800 million in economic development money administered by various state agencies. The difference this time is they will be able to apply for grants through a single form, rather than applying through each agency.

Cuomo has said the regional councils are modeled after the federal Empowerment Zone program that began under President Clinton in 1994.

Categories: Business

Leave a Reply