A $150 million investment announced Wednesday by IBM will create 400 new jobs next year at the microchip assembly plant in Bromont, Que.

The investment is part of a previously announced $5-billion US project to expand IBM's computer semiconductor business.

"The IBM microelectronics business is facing unprecedented customer demand. Capital investments and people investments are key for IBM Bromont to help meet that demand," said Bill McClean, IBM Canada's vice-president for manufacturing, development and operations, in a release.

McClean said the Bromont facility continues to be a strong contributor to IBM and also to the Quebec and Canadian economy.

The Bromont factory, which employs 3,400 people, is the company's largest microchip assembly plant. It performs most of IBM's internal assembly and test operations for the company's most technologically complex products.

The factory also performs customized packaging for original equipment manufacturers.