IBM Corp recently announced that it will be creating at least 1,000 New York jobs as part of a $1.5 billion investment package it has been working on with state officials. In addition to the money from IBM, the state will be investing $140 million, which means that the company is committing to more than $10 for every $1the New York state government is willing to put into the project.
Of the jobs in New York being created, 325 will be at the University of Albany’s College of Nanoscale Science and Engineering. IBM, which already has around 200 employees at this facility, is currently the largest tenant at the College. In order to help in the creation of these new positions, the state will be dedicating $25 million towards the expansion of the company’s operations there.
“With the investments [announced] today,” John Kelly, senior vice president and research director of IBM told a group of over 500 gathered at the University of Albany, “I think we’re going to continue to see our competition in nanotechnology in our rear-view mirror.”
Another $50 million of the state’s money will go towards helping with the construction of a semiconductor research center which will be located somewhere in upstate New York. Although the location for this facility has yet to be determined, the 120,000-square-foot center will be owned and run by Albany NanoTech. Officials say that, once fully operational, the center will create more than 675 New York City jobs. Already Rensselaer Polytechnic Institute has agreed to be a tenant once the center opens.
CEO of Albany NanoTech, Alain Kaloyeros , believes that this deal is a “visionary and pioneering investment” which will bring about “critical job creation and funding benefits spanning from Buffalo to Hudson Valley.”
IMB’s John Kelly said that the company’s plan to expand its research into semiconductors is to accommodate a growing demand for more advanced computers, telecommunication systems and consumer electronics.
The remaining $65 million of the state’s money will go towards upgrading IBM’s operations in East Fishkill. Through this effort the company will be able to retain the 1,400 employees it has working in this area, despite announcing that other IBM workers elsewhere in the country will be losing their jobs.
According to the most recent U.S. Census Bureau statistics, a significant number of people are leaving upstate New York communities. Because of this Gov. David Paterson believes that these efforts will help to keep the population up and restore prosperity. “This is one of the steps we took to turn New York around,” he said.