To: Proud_Infidel who wrote (38005 ) 10/10/2000 10:33:37 AM From: Kirk © Respond to of 70976 IBM to build New York chip plant as part of $5 billion worldwide capacity investment ibm.com EAST FISHKILL, N.Y., Oct. 10, 2000 . . . IBM today announced the largest capital investment in its history -- including plans to build the world's most technologically advanced chip-making facility in East Fishkill, N.Y. The facility will combine -- for the first time anywhere -- IBM chip-making breakthroughs such as copper interconnects, silicon-on-insulator and low-k dielectric insulation on 300mm (12-inch) wafers. IBM also expects to be the first chip-maker to mass produce semiconductors at line-widths below 0.10 microns, more than 1000 times thinner than a human hair. The facility is planned to begin operation in the second half of 2002, bringing up to 1000 new jobs to the region upon full production in early 2003.The $2.5 billion plant is part of a total $5 billion capital investment plan to support IBM's increasing semiconductor business around the world. In addition to the New York facility, the company is expanding chip-making capacity in IBM's existing Burlington, Vt., and Yasu, Japan, facilities, as well as in Altis Semiconductor, a joint venture between IBM and Infineon located in Corbeil-Essonnes, France. IBM is also expanding organic and ceramic chip packaging operations worldwide. "The world of e-business is driving a massive build-out of the infrastructure of computing and communications," said Lou Gerstner, IBM Chairman and CEO. "That, in turn, drives demand for critical technical components like chips. Demand is white-hot in three critical segments -- chips for big servers, chips to power the explosion in Internet access devices and chips in the networking equipment that ties everything together. That's why today's announcement is important -- important for our industry, our customers and our employees." IBM is leading the way to a new era in chip-making, which is driven by demand for innovative technologies to fuel advanced products, such as networking gear, pervasive computing devices and high-performance servers. "Increasingly, high-tech companies are turning to IBM for their high-technology," said John Kelly, senior vice president and group executive, IBM Technology Group. "The semiconductor industry has never been stronger, and demand for our technologies has never been greater. We're investing billions of dollars across the globe to meet the long-term technology needs of our customers." With its unprecedented combination of advanced technology and production capability, IBM's 300mm plant in East Fishkill is expected to offer new opportunities for employees and local communities, bringing jobs and added investment to the region."IBM's new East Fishkill facility represents the single largest capital investment in New York's history, sending a powerful message around the world that New York State and in this case Upstate New York can compete and win its share of new jobs," said New York Gov. George Pataki. "Building on the growth of Silicon Alley in New York City and our Semi-NY program, this investment in the Hudson Valley is a perfect example of how government and industry can work together to establish New York as a home to high-tech industry. I thank Lou Gerstner for once again linking IBM's destiny and success to New York State's." IBM has been granted more U.S. patents than any other company for the last seven consecutive years. Chip and packaging technology from the IBM Microelectronics Division has contributed more than one third to that IBM patent total. IBM was the first to introduce the use of copper in place of aluminum in chip wiring, as well as the use of SOI transistors and low-k insulation materials to enhance the performance and lower the power requirements of chip designs. The company has been the leader in the drive toward smaller circuitry, combining the function of multiple chips onto a single "system-on-a-chip." This technology has established IBM as the No. 1 one worldwide supplier of custom application-specific integrated circuit chips.