POUGHKEEPSIE – Last Tuesday, Rep. Sean Patrick Maloney (NY-18) hosted President Joseph R. Biden, Jr. to celebrate the $20 billion IBM will be investing in manufacturing facilities in the Hudson Valley, like their plant in Poughkeepsie, over the next ten years.
IBM’s investment is the latest in an exciting and growing trend of major manufacturers bringing good-paying jobs and manufacturing investments back to America after the passage of the CHIPS and Science Act, which Rep. Maloney helped pass through the House.
“Millions of good-paying jobs in American manufacturing are coming back to our communities, and we can see that investment happening right here in the Hudson Valley. Thanks to the CHIPS and Science Act, which I was proud to help pass this year, we are creating an economy that works for all Americans today and ensures our competitiveness for generations to come,” said Rep. Maloney. “When I heard President Biden wanted to see the positive impact of the CHIPS bill, I told him to come see it first-hand here in Poughkeepsie where IBM is investing $20 billion across the region. I was thrilled to host the President today to celebrate with him the real results of this transformative law, and to show the whole world that the Hudson Valley is poised to become a powerhouse in high-tech manufacturing.”
“It’s great to be here with the Hudson Valley’s Congressman, Sean Patrick Maloney […] It’s here, here at this factory and at other factories across America, that America’s future is literally being built because of the groundbreaking CHIPS and Science Act which I signed into law with the help of Majority Leader Schumer and the Members of Congress who are here today,” said President Biden. “It was here in Poughkeepsie that the rifles for WWI were made, where the first electric typewriters, calculators – even cough drops – were made. […] And it’s here now where the Hudson Valley could become the epicenter of the future of quantum computing.”
Background on IBM’s Newly Announced Investments:
* Last Tuesday, IBM announced a $20 billion investment over the next decade in R&D and manufacturing of semiconductors, mainframe technology, artificial intelligence and quantum computing across the Hudson Valley. These investments will create good-paying manufacturing jobs here in our communities.
* Background from IBM: Poughkeepsie is the only site where IBM builds state-of-the-art mainframe systems that power the global economy. The site is also home to IBM’s first Quantum Computation Center – one of the largest concentrations of quantum computers on Earth. IBM’s vision is for Poughkeepsie to become a global hub of the company’s quantum computing development.
Background on H.R. 4346, the CHIPS and Science Act
* Results from the CHIPS and Science Act:
* Since being signed into law, the CHIPS and Science Act has already begun returning manufacturing jobs and investment to the United States. Select recent examples of investments resulting from or aided by the CHIPS and Science Act are listed below:
* Micron pledged up to $100 billion to build a microchip facility outside of Syracuse, New York.
* This includes $20 billion over the next 8 years and up to $100 billion over the next twenty years. Construction will take place in 2024 with factory production beginning in 2025.
* This project will generate approximately 50,000 jobs, with 9,000 directly associated with Micron and up to 40,000 through suppliers, contractors, and associated industries.
* “There is no doubt that without the CHIPS Act, we would not be here today,” said Sanjay Mehrotra, chief executive of Micron.
* Intel is investing $20 billion in Ohio for construction of two new semiconductor plants.
* This is the largest single private-sector investment in Ohio history.
* The initial phase of the project is expected to create 3,000 Intel jobs and 7,000 construction jobs over the course of the build, and to support tens of thousands of additional local long-term jobs across a broad ecosystem of suppliers and partners.
* Intel is also building two sites in Arizona and a packaging plant in New Mexico.
* Wolfspeed, one of the biggest producers of silicon carbide, announced a $1.3 billion investment to build a plant outside Durham, North Carolina.
* The facility will primarily produce 200mm silicon carbide wafers, which are 1.7x larger than 150mm wafers, translating into more chips per wafer and, ultimately, lower device costs.
* The site will employ 1,800 people.
* The CHIPS and Science Act is bringing manufacturing back to America by investing:
* $54.2 billion for chip manufacturing and public wireless supply chain innovation, including:
* $39 billion in financial assistance for domestic semiconductor fabrication, assembly, testing, packaging and more.
* $11 billion for research and development through the National Semiconductor Technology Center, the National Advanced Packaging Manufacturing Program, and the Manufacturing USA Semiconductor Institute.
* $200 million to develop a domestic semiconductor workforce in partnership with the National Science Foundation.
* Provides a 25% investment tax credit for investments in semiconductor manufacturing. The credit covers both manufacturing equipment and the construction of facilities.
* $81 billion for the National Science Foundation to reinvest in American education and research, including:
* $20 billion for a new Directorate for Technology, Innovation, and Partnerships to develop critical technologies such as AI, quantum computing, and materials sciences.
* $13 billion to support growing the STEM workforce.
* $11 billion for the Department of Commerce to establish regional innovation hubs.