Intel, IBM and Others Invest $4.4 (€3.2) Billion in Chip R&D in New York

The New York state governor announced yesterday that a group of semiconductor companies led by Intel and IBM will invest $4.4 billion in the next five years in order to create a semiconductor R&D hub in New York to develop next-generation chip technology.

The investment targets two projects, one of these being led by IBM and its partners, that will focus on building the next two generations of semiconductors, while the latter will be led by Intel.

Intel's project is dubbed the Global 450 Consortium and is focused on developing manufacturing technology for 450mm wafers.

Outside of Intel, the Consortium also includes IBM, TSMC, Globalfoundries and Samsung Electronics.

"The Global 450 Consortium is a critical element to moving the semiconductor industry to next generation wafer size,” said Paul Otellini, the president and CEO of Intel.

“This new technology will reduce the cost of production, increase productivity for manufacturers and reduce our environmental footprint on a per chip basis.

“The involvement of the College for Nanoscale and Science Engineering (CNSE) and the state of New York will enable the industry to meet its goals," concluded Mr. Otellini.

No less than $3.6 (about €2.65) billions out of the total $4.4 billion investment will come out of IBM's pockets, said a company spokesperson.

IBM, together with Globalfoundries and Samsung, will focus their research on developing chips using the advanced 22- and 14-nm fabrication nodes.

According to the governor's office, the R&D hub established by IBM, Intel and its partners will create bout 4,400 jobs in the state of New York, and will also result in the retention of another 2,500 existing jobs.

The migration from 300mm wafers to 450mm wafers would allow semiconductor manufacturers to produce more than twice as many chips per wafer as they are building now, which should help drive prices for such chips down. (via EETimes)