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IBM Unveils N.Y. Chip-Making Plant
Associated Press via Yahoo ^ | July 31 | ALICIA CHANG

Posted on 08/01/2002 3:29:06 PM PDT by Straight Vermonter

IBM Unveils What Is Believed to Be the World's Most Advanced Chip-Making Plant

EAST FISHKILL, N.Y. (AP) -- IBM Corp. unveiled what was believed to be the world's most advanced chip-making plant Wednesday, promising 1,000 new jobs and a boost to the upstate economy.

The $2.5 billion, 140,000-square-foot facility currently makes the prototype cutting-edge chips and was expected to reach full production by February 2003.

The chips produced at the Fishkill plant, 60 miles north of New York City, will be the first IBM chips to be made on 300mm wafers of silicon, instead of the current 200mm wafers. More chips can be made from each of the larger wafers, improving productivity and making it more cost effective.

While companies like Intel Corp. and Samsung Electronic Co. already manufacture 12-inch wafers, IBM officials believe they are the first to use an automated system to mass-produce the chips.

"Technology continues to be one of our cornerstones in delivering value to our customers," said IBM president and chief executive Samuel J. Palmisano. "We are invigorating our microelectronics business and are confident we have the right formula of technology."

The plant also will be the first to mass produce circuits thinner than 0.1 micron, or 1,000 times thinner than a human hair. The old standard was 0.25 microns, with some chips now at 0.18 microns. The thinner lines, or conduits, allow chips to run faster and use less electricity.

These technological advances will make the chips suitable for smaller devices, like cell phones and handheld computers, said Bijan Davari, IBM vice president of technology and emerging products.

The plant, which combines new technology such as copper wiring, silicon-on-insulator-based transistors and improved insulation, is part of a total $5 billion capital investment IBM launched two years ago to expand its chip-making sites around the world.

Among IBM's first customers is San Jose, Calif.-based Xilinx Inc., which signed a $100 million deal to use the 300mm wafers to create custom chips, said IBM spokesman Christopher Andrews.

The switch to 300mm chip is expected to save IBM 30 percent more than the 200mm chip, ultimately saving billions of dollars over a period of several years, said microelectronics division general manager Michel Mayer.

Analyst Greg Sheppard of El Segundo, Calif.-based iSuppli, which tracks the semiconductor industry, believed the opening of the new semiconductor facility, was "a well-timed investment" since demand for the new chips will increase when the economy recovers.

"I think IBM has done the right thing and is doing it smartly," Sheppard said. "As the industry is slowing down, it's jumping right into it."

The plant opening comes as the computer company has slashed thousands of jobs nationwide in a cost-cutting effort after its worst earnings quarter in more than a decade, posting a 97 percent drop in profits in the second quarter that ended June 30. Last month, IBM laid off another 1,500 workers, bringing the current total of U.S. layoffs by the company to 6,800.

Employees near the Burlington, Vt., plant, which depends on older lines of chip manufacturing, suffered almost 1,000 job losses. IBM then laid off 500 more employees in Endicott and East Fishkill, N.Y.; Lowell, Mass; Raleigh, N.C.; Austin, Texas and Encinitas, Calif.

The unveiling of the Fishkill plant also comes a month after IBM announced it was selling its sprawling 4.1 million-square-foot complex in Endicott, where the company was founded early last century.

After struggling for the past few years, the semiconductor industry expects worldwide sales to increase 3.1 percent in 2002 and jump 23.2 percent in 2003 fueled by increases in sales of cellular phones, personal computers and other digital consumer electronics equipment.

Worldwide sales of all chips are expected to total $143 billion in 2002, $177 billion in 2003 and $213 billion -- a 20.9 percent increase -- in 2004. Another slowdown is expected by 2005.


TOPICS: Business/Economy; Front Page News; News/Current Events; US: New York; US: Vermont
KEYWORDS: computers; ibm; technology
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I work at the Burlington, VT plant which was originally supposed to be the location for the new fab. VT officials, however, have so angered IBM that it is widely rumored here that the company hopes to move completely out of the state.

IBM has waited 30 years for an access road to be built. Environmentalist just delayed the start of construction indefinitely again. IBM has asked the state to do something about high electrical costs (30% higher than in NY). The state has refused. In fact VT socialist congressman Bernie Sanders has repeated pushed for a union at the plant which already has about the best pay and benefits in the state. Governor (and presidential hopeful) Howard Dean has said the state needs to move away from (high paying, good benefit) jobs with large corporation and focus on (minimum wage, no benefit) jobs with local mom and pop companies. Needless to say big corporations are not beating down the doors to move to VT.

1 posted on 08/01/2002 3:29:06 PM PDT by Straight Vermonter
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To: Straight Vermonter
Needless to say big corporations are not beating down the doors to move to VT.

Just gays and lesbians seeking wedlock.

2 posted on 08/01/2002 3:31:11 PM PDT by Kevin Curry
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To: Straight Vermonter
What surprised me most was that the grifting Senator Clinton didn't announce this/take credit. In due course, I'm sure. And my condolences to you SV. Cheer up, many of us live in California. ;^)
3 posted on 08/01/2002 3:31:51 PM PDT by eureka!
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To: eureka!
Good point.

Before I forget, NY State gave IBM full permiting to build, in just a few weeks. It is estimated it would have taken IBM 9 years to get the same permits here.

4 posted on 08/01/2002 3:38:10 PM PDT by Straight Vermonter
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To: Kevin Curry
"Just gays and lesbians seeking wedlock."

Don't you mean webmock..??!!
5 posted on 08/01/2002 3:45:07 PM PDT by Texas_Jarhead
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To: Kevin Curry
oops.. webmock should be wedmock
6 posted on 08/01/2002 3:45:52 PM PDT by Texas_Jarhead
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To: Straight Vermonter
For all that's wrong with New York, the legislators here seem to know not to kill off our businesses. Or they're in bed with the businesses. Something like that.
7 posted on 08/01/2002 3:46:44 PM PDT by decimon
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To: decimon
For all that's wrong with New York, the legislators here seem to know not to kill off our businesses. Or they're in bed with the businesses. Something like that.

NY has been driving companies South for years. The state of NC is full of X-NY'ers who talk about lack of jobs in NY State.

It's surprising that IBM didn't build that plant somewhere else.

8 posted on 08/01/2002 4:03:40 PM PDT by alrea
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To: Straight Vermonter
I work at the Williston site. I think ol' Howie Dean is trying to make VT into a vacation state for the trust fund kids. Great place to live if you are independently wealthy and liberal.
9 posted on 08/01/2002 4:05:00 PM PDT by nervousinvermont
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To: Willie Green
Yoooo hooooo....
10 posted on 08/01/2002 4:06:02 PM PDT by denydenydeny
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To: Straight Vermonter
"The plant also will be the first to mass produce circuits thinner than 0.1 micron, or 1,000 times thinner than a human hair. The old standard was 0.25 microns, with some chips now at 0.18 microns. The thinner lines, or conduits, allow chips to run faster and use less electricity."

I made chips for 30+ years. We were just going to 0.25 microns when I retired. (TI)

11 posted on 08/01/2002 4:12:29 PM PDT by blam
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To: alrea
You're right. NYC in particular has driven off the textile industry and has what was called the best natural harbor virtually empty.

I should have said that they know not to kill off the big businesses.

Some people from the NYC area have moved to States like NC because there they could afford a house.
12 posted on 08/01/2002 4:12:45 PM PDT by decimon
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To: eureka!
"What surprised me most was that the grifting Senator Clinton didn't announce this/take credit." Most politicians say good news on their watch is all their doing and bad news is -- not ;-) Once you look for it, you see and hear it everywhere. Even from the home team.
13 posted on 08/01/2002 4:21:08 PM PDT by ConsistentLibertarian
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To: blam
The plant also will be the first to mass produce circuits thinner than 0.1 micron, or 1,000 times thinner than a human hair. The old standard was 0.25 microns, with some chips now at 0.18 microns.

From my limited knowledge, I think IBM is now at 0.13 microns and this plant is supposed to get them down to 0.08!

Please let them make Power PC chips there with the 0.08 microns process. Daddy needs a new PowerMac!

14 posted on 08/01/2002 4:44:27 PM PDT by Boss_Jim_Gettys
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To: ConsistentLibertarian
Understood. But some are more brazen than others--the most brazen I can think of being a credibly accused rapist and perjuror. ;^)
15 posted on 08/01/2002 4:44:59 PM PDT by eureka!
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To: eureka!
I don't know about that. This is one point that I think applies in equal measure to politicians of every party.
16 posted on 08/01/2002 5:01:50 PM PDT by ConsistentLibertarian
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To: Boss_Jim_Gettys
"The plant also will be the first to mass produce circuits thinner than 0.1 micron"

Mass produce is always the key word. This business has put many "over the edge."

17 posted on 08/01/2002 5:49:43 PM PDT by blam
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To: blam
TSMC .13 has been around since Jan 01. It's mature enough now to where they have the high voltage variations and everything. That means the next generation is just around the corner. I'm guessing it will be .08 microns. It went from .25 to .18 to .13, so my best guess is that .08 is going to be real by the end of the year.
18 posted on 08/01/2002 8:07:56 PM PDT by Billy_bob_bob
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To: Willie Green
1000 american jobs created.
19 posted on 08/01/2002 8:08:45 PM PDT by staytrue
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To: staytrue
Not really. Doesn't begin to offset those that IBM has laid off.
It's an interesting technological advancement...
But the high-tech sector remains saturated and the overall decline will continue.
Chips are no longer a high-growth industry.
Despite technical advances, the gold-rush is over.
20 posted on 08/01/2002 8:20:37 PM PDT by Willie Green
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