On Thursday, President Joe Biden will highlight IBM Corp.’s (IBM.N) intentions to spend $20 billion in New York over the following ten years on the research and development of semiconductors, mainframe technology, artificial intelligence, and quantum computing.
The announcement is the most recent in a series of investments made since Biden signed the Chips and Science Act in August, which provided $52 billion to support the production and study of semiconductor chips.
The administration claims that substantial subsidies for private enterprises are required because chip companies have been receiving billions in incentives from China and the European Union.
Prior to the House midterm elections later this month, Biden has tried to take advantage of the investment announcements. He visited Ohio last month to give a speech near the location of Intel Corp.’s $20 billion semiconductor manufacturing facility.
The Hudson Valley in New York, where IBM’s Poughkeepsie facility is located, was a hub of industry during America’s Industrial Revolution, but as businesses moved to less expensive locations, the region’s employment opportunities dried up.
IBM claimed it now intends to make the location ‘a global hub of the company’s quantum computing development, much as it is today for mainframes,’ despite the fact that it relocated chip and other production there in the 1990s and caused thousands of local jobs to be lost.
Post Your Comments