New York State Commits $1 Billion to Expand Chip Technology Research in Albany

Albany, NY - In a bid to establish the region as a global hub for semiconductor research and manufacturing, New York Governor Kathy Hochul announced on Monday that the state will invest $1 billion in chip technology research. The move aims to bolster New York's chances of securing federal grants under the CHIPS and Science Act, which is set to provide over $52 billion for semiconductor research and manufacturing. The long-term plan seeks to challenge industry competitors, particularly China, and regain control over the technological sector.

Speaking at a news conference alongside chip industry leaders and New York's U.S. senators, Hochul, a Democrat, emphasized the importance of the investment in securing New York's position in the race for global technological leadership. "There's a race for global domination. That's why we're here," she stated. "And I'm here to announce that New York state will win that race."

The ambitious plan is expected to generate approximately 700 new jobs and includes the acquisition of a cutting-edge lithography machine for chip manufacturing, according to officials. To match the state's $1 billion investment, companies such as IBM and Micron, renowned semiconductor designer and manufacturer respectively, will contribute an additional $9 billion. Part of this funding will be allocated to the construction of a chip research facility at the University at Albany.

Senator Chuck Schumer, a strong advocate for the partnership between the public and private sectors, heralded the initiative as a means to drive groundbreaking discoveries and ensure the future of the semiconductor industry is rooted in upstate New York. "We can make discoveries that engineers today don't even fathom and make sure that the future of the semiconductor industry, both in research and manufacturing, is developed right here in upstate New York," Schumer stated.

Although specific details regarding the timeline for hiring and industry investments were not disclosed by New York officials, the announcement coincided with the Biden administration's commitment to provide $35 million in CHIPS Act funding to BAE Systems. This funding aims to increase chip production at a factory in New Hampshire, which manufactures chips for military aircraft.

New York has previously relied on incentives and substantial financial packages to support its semiconductor industry. In 2009, the state secured a $1.4 billion package to establish a chip plant near Saratoga Springs, while also offering $5.5 billion in tax breaks to attract Micron to Syracuse.

The decision to invest heavily in chip technology research underscores the growing recognition of the semiconductor industry's significance for technological advancement and national security. With New York's commitment to becoming a global leader in this field, the state aims to drive innovation, create jobs, and strengthen its economic position on a global scale.

Associated Press writer Karen Matthews contributed to this report from New York City. Maysoon Khan is a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow her on X, formerly Twitter: @MaysoonKhan.