Biden to discuss IBM's US$20 billion New York investments

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Biden to discuss IBM's US$20 billion New York investments

President Biden will talk about IBM Corp's plans to invest US $20 billion in New York over the next decade in development and manufacturing of semiconductors, mainframe technology, artificial intelligence and quantum computing.

Since Biden signed the Chips and Science Bill in August, the announcement has been the latest in a series of investments that have been unveiled since Biden signed the Chips and Science Bill, which funded $52 billion for semiconductor chip manufacturing and research.

The administration says hefty subsidies for private businesses are necessary because China and the European Union have been giving billions of dollars in incentives for chip companies.

Biden is trying to capitalize on the investment announcements ahead of the midterm congressional elections next month. He travelled to Ohio last month to speak at Intel Corp's planned US $20 billion semiconductor manufacturing facility.

Over the next 20 years, Micron Technology will invest up to $100 billion to build a semiconductor fabrication facility in New York, expected to create more than 50,000 jobs, with the first phase investment of US $20 billion planned for the next decade.

White House National Economic Director Brian Deese said on Twitter that Micron investment is a significant win for US economic national security and part of a long term industrial strategy that will bolster US competitiveness and increase our long-term productive capacity. Biden will visit IBM's Poughkeepsie, New York site, home to the largest concentrations of quantum computers, and will be joined by Chief Executive Arvind Krishna.

IBM 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 US $20 billion investment plans.

IBM said that chips funding will ensure a reliable and secure supply of next-generation chips for today's computers and artificial intelligence platforms.