IBM to lead $4.4 billion chip investment in New York

[FarCenter]

Five chip makers, including Intel, IBM, Samsung Electronics, GlobalFoundries and Taiwan Semiconductor Manufacturing Co. have committed investment of US$4.4 billion in research and development in the state of New York over the next five years, to develop new 450-millimeter chip wafer technology, the state's governor Andrew M. Cuomo said on Tuesday.

New York secured the investment in competition with other locations worldwide, Cuomo said in a speech that was also webcast.

IBM has committed $3.6 billion of the total investment to work on next generations of computer chips, including those using 22-nanometers and 14-nanometers process technology, said John Kelly, senior vice president and director of IBM Research.

Since 2000, IBM has invested more than $10 billion in New York state, its largest investment anywhere in the world, Kelly said.

http://www.computerworld.com/s/article/9220342/IBM_to_lead_4.4_billion_chip_investment_in_New_York

[belcffub]

1. public money for private corporations

From the article

No private company will receive any state funds as part of the agreement. To support the project, New York state will invest $400 million in the State University of New York (SUNY) College for Nanoscale and Science Engineering (CNSE) in Albany, including $100 million for energy efficiency and low-cost energy allowances.

The state investment in CNSE will be made over a five-year period. "The state doesn't fund business. The state funds SUNY if and only if the jobs are actually being created," Cuomo said.

What they fail to say is the Chip manufactures have been given hundreds of millions over the last decade in NY. I suspect he changed the funding of deals from his predecessors because of pending litigation in the state that is seeking to enforce part of the state constitution :

“The money of the state shall not be given or loaned to or in aid of any private corporation or association, or private undertaking.” Article VII, § 8. 1.

These deals have given huge amounts of state funds to private companies, IBM included.