IBM to Spend $2.5 Billion on N.Y. Chip-Making Plant - TheStreet

IBM to Spend $2.5 Billion on N.Y. Chip-Making Plant

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IBM

(IBM) - Get Report

will spend $2.5 billion to build an advanced chip-making plant at its East Fishkill, N.Y., facilities as part of a $5 billion expansion.

The new plant, which IBM described as the largest capital investment in its history, will allow the company to be the first chipmaker to mass-produce semiconductors at microscopic line-widths thinner than a human hair and far thinner than what present micron technology uses. IBM plans to open the plant in the second half of 2002 and to add up to 1,000 new jobs by early 2003.

IBM's total $5 billion chip-making capital investment plan includes expanding capacity in its existing Burlington, Vt., and Yasu, Japan, plants. The company also plans to expand its

Altis Semiconductor

joint venture with

Infineon Technologies AG

(IFX)

, as well as its global chip-packaging operations.

Shares of IBM were recently down 3.8%, or $4.50, to $113.44.