IBM to Build US$2.5B Chip Plant in New York

IBM Corp. Tuesday announced plans to build a US$2.5 billion chip-making plant in East Fishkill, N.Y. The company said the plant is part of its $5 billion capital-investment plan to support its semiconductor business.

The new facility is scheduled to begin operation in the second half of 2002 and is expected to be in full operation in early 2003. It's expected to add 1,000 jobs to the region.

In a statement, the company said it's also expanding its chip-making capacity in its Burlington, Vt., and Yasu, Japan, plants as well as in its facility in France. IBM said it is also expanding its worldwide organic and ceramic chip-packaging operations.

"The world of e-business is driving a massive build-out of the infrastructure of computing and communications," IBM Chairman and CEO Louis V. Gerstner said in the statement. "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."

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