Photo: Empire State Plaza, Albany, N.Y./by Wayne Hanson

New York Gov. David A. Paterson on Tuesday announced significant new investments by IBM and New York state, accelerating New York state's international leadership in nanotechnology research and development and creating up to 1,000 new high-tech jobs Upstate. The state will provide a total of $140 million in economic development grants, leveraging more than a 10-to-one private investment of $1.5 billion from IBM.

The investment will go toward three separate and complementary components of a comprehensive project, supporting the nanotechnology chip computer activities of IBM: the expansion of IBM's operations at the College of Nanoscale Science and Engineering at the University at Albany (Albany NanoTech), the creation of a new, advanced semiconductor packaging research and development center at a to-be-determined in Upstate New York, and the upgrading of IBM's East Fishkill facility in Dutchess county.

"With this announcement, we are once again demonstrating that New York state is open for business. We offer a highly skilled workforce and high quality of life. New York state is also, now more than ever, a clear national leader in nanotechnology development," said Paterson. "The positive effects of this critical investment will be felt for a generation, and will be the catalyst for other high tech business development throughout Upstate New York. Our state has become the leading location for nanotechnology research and development."

The three projects will collectively advance "nano-chip" technologies, including cutting-edge chip design, demonstration, and testing which all takes place at Albany NanoTech. Nano-chips each carry billions of transistors, and applications include high-end personal computers and laptops; high-performance servers and supercomputers; virtual reality and advanced electronic games; medical devices and components; ultra-fast telecommunications devices; "sensor-on-a-chip" systems for anti-terrorism and "soldier-in-the-field" remote monitoring and sensing.

Today's agreement will also help IBM retain more than 1,000 key semiconductor jobs at its East Fishkill plant in Dutchess county. The company has agreed to provide significant resources to upgrade that site with state-of-the-art technology. The State will additionally provide $65 million toward that effort.