NY to Subsidize $1.2B for Semiconductor Plant

Despite the stock market's slide and New York's projected $8 billion deficit, Governor Paterson is granting $1.2 billion in state aid for a new high-tech semiconductor factory. Paterson says New York eventually will reap benefits from helping AMD build the plant upstate.

PATERSON: This may be one of the biggest technological centers for the country and it may create a new culture where people are running to New York to participate in that economic opportunity rather than away from it which people have in the past.

REPORTER: Paterson says he was originally against granting AMD state aid because of the cost, but he says he changed his mind when he realized it would re-energize the state's slowing economy.

AMD is part of a global consortium that's building the semiconductor factory in Saratoga County. It's expected to employ 1,500 people and generate another 1,600 construction jobs.