IBM will lead a $2.7 billion investment in a next generation chip plant with help from co-investors Sony, Toshiba and Samsung.

New York Governor George Pataki revealed details of the investment in his 2005 “State of the State” address today. IBM’s contribution to the plant will be $1.9 billion.

“Over the last decade, IBM has repeatedly demonstrated its confidence in New York and our policies through a succession of landmark investments,” Pataki said during his address.

“Here in Albany, we have yet another exciting announcement at our Center of Excellence in Nanoelectronics. ASML, the world’s leading chip equipment manufacturer, will invest over $325 million to create its first-ever R & D center outside of Europe,” he said.

“At the Albany Center of Excellence, IBM and a consortium of the largest nanoelectronics equipment suppliers will fund an unprecedented $450 million expansion of that center's R & D capabilities. Together these projects will bring a staggering $2.7 billion in new private investment to Tech Valley, bringing jobs and optimism to communities throughout the region,” continued Pataki.

The announcements are proof-positive that the high-tech and Center of Excellence programs are working, attracting investment from around the globe and transforming N.Y.’s economy to meet the challenges of the 21st century, he also said.

The plan is set to create 750 new jobs, along with another 250 in various related research projects to be funded as part of a decade-long drive by the governor to boost the fortunes of a region which has struggled to regain its footing since employers such as General Electric Co. closed older manufacturing plants there in the 1980s.

The 380,000-square-foot plant is scheduled to begin operations in the second half of 2005 for use in producing chips for key IBM customers such as Sony, reports said.