Tech firms to invest $4.4 bln in upstate New York

ALBANY, N.Y., Sept 27 (Reuters) - A group of five technology firms will invest $4.4 billion in New York State in an effort to develop a new generation of computer chips, Gov. Andrew Cuomo announced on Tuesday.

The companies which signed an agreement with New York are Intel (INTC.O), IBM (IBM.N), GLOBALFOUNDRIES [CSMF.UL], TSMC (2330.TW) and Samsung (005930.KS).

The investment could keep or create about 7,000 jobs upstate, Cuomo said in a statement, adding that no private company would receive any state funds.

"This unprecedented private investment in New York's economy will create thousands of jobs and make the state the epicenter for the next generation of computer chip technology," Cuomo said.

Under an agreement between the state and the firms, New York will kick in $400 million over five years to the State University of New York's College for Nanoscale and Science Engineering (CNSE) in Albany.

The state's investment will be directed entirely to CNSE, and all tools and equipment acquired will be owned by CNSE.

New research and development facilities will be located in Albany, Canandaigua, Utica, East Fishkill and Yorktown Heights.

Two projects make up most of the investment. The first will focus on making the next generation of computer chips while the second will focus on changing existing production over to the new technology.

Tuesday's announcement came as 10 newly created regional development councils began to debate economic development initiative ideas. On a radio show on Monday, Cuomo said "plans with a high degree of predictability" would be rewarded with grants and tax credits. (Writing by Chip Barnett; Editing by James Dalgleish)