Biden to tout IBM’s $20 billion investment in New York over next decade
2022.10.06 05:33
© Reuters. FILE PHOTO: U.S. President Joe Biden tours areas damaged by Hurricane Ian during a visit to Florida, in Fort Myers Beach, Florida, U.S., October 5, 2022. REUTERS/Evelyn Hockstein
By David Shepardson and Nandita Bose
WASHINGTON (Reuters) – President Biden on Thursday will tout IBM (NYSE:) Corp’s plans to invest $20 billion in New York over the next decade in development and manufacturing of semiconductors, mainframe technology, artifical intelligence and quantum computing.
The announcement is the latest in a string of investments unveiled since Biden signed the Chips and Science bill in August that funded $52 billion to subsidize semiconductor chips manufacturing and research.
The administration says hefty subsidies for private businesses are necessary because China and the European Union had been awarding billions in incentives to chip companies.
Biden has sought to capitalize on the investment announcements ahead of next month’s midterm congressional elections. Last month, he traveled to Ohio to speak at the site of Intel Corp (NASDAQ:)’s planned $20 billion semiconductor manufacturing facility.
On Tuesday, Micron Technology (NASDAQ:) said it would invest up to $100 billion over the next 20-plus years to build a semiconductor fabrication facility in New York that is expected to create nearly 50,000 jobs, with the first phase investment of $20 billion planned this decade.
White House National Economic Director Brian Deese on Twitter called the Micron investment “a significant win for US economic & national security” and “part of a deliberate, long term industrial strategy that will bolster U.S. competitiveness, & increase our long-term productive capacity.”
Biden will visit IBM’s Poughkeepsie, New York site home to of the largest concentrations of quantum computers and will be joined by Chief Executive Arvind Krishna.
IBM said it plans to make its Poughkeepsie site “a global hub of the company’s quantum computing development, just as it is today for mainframes.” IBM did not provide a detailed breakdown of its $20 billion investment plans.
IBM said chips funding “will ensure a reliable and secure supply of next-generation chips for today’s computers and artificial intelligence platforms.”
