The project will create 1,000 permanent new jobs at the siteonce it reaches full production in early 2003. The new plant, whichis part of IBM's $5 billion capital investment plan to support itssemiconductor business, is scheduled to begin operations during thesecond half of 2002, IBM officials estimate. The building totalsapproximately 635,000 sf of which a little more than 200,000 sf isuseable.

IBM Chairman and CEO Lou Gerstner comments, "The world ofe-business is driving a massive build-out of the infrastructure ofcomputing and communications. That, in turn, drives demand forcritical technical components like chips. Demand is white hot inthree critical segments--chips for big servers, chips to power theexplosion in Internet access devices and chips in the networkingequipment that ties everything together. That's why today'sannouncement is important--important for our industry, ourcustomers and our employees."

In 1997, IBM and Governor Pataki announced plans by Big Blue tobuild a $700-million pilot chip fabrication plant for300-millimeter (12 incn) wafers at Building #323. However, in 1998the semiconductor business experienced a downturn and the plant wasput on hold, recalls Dutchess County Economic Development Corp.President Kathleen Sullivan Norat. Today's announcement marks theexpansion of the pilot 300-millimeter wafer project to fullbuild-out. In addition, IBM also plans to mass producesemiconductors at line-widths more than 1,000 times thinner than ahuman hair at the plant.