UPDATE 1-NY Gov: IBM to invest $1.5 bln in nanotechnology

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NEW YORK, July 15 (Reuters) - IBM (IBM.N: Quote, Profile, Research, Stock Buzz) will invest $1.5 billion in nanotechnology chip projects, which include a research center in upstate New York at a site yet to be chosen, Gov. David Paterson said on Tuesday.

The state will contribute $140 million in economic development grants, Paterson added in a statement.

New York for years has struggled to find a way to awaken the upstate economy and the Democratic governor said the investments will create 1,000 high-tech jobs.

In addition to the new research center, IBM will expand its operations at the College of Nanoscale Science and Engineering at the University at Albany and upgrade its East Fishkill facility in Dutchess County. (Reporting by Joan Gralla; Editing by Tom Hals)