New York Commits $1 Billion to Albany Chip Development

Gov. Hochul Announces Initiative to Establish Albany as Tech Hub, Lure Federal Funds
N.Y. officials in Albany
New York Gov. Kathy Hochul and Sen. Chuck Schumer (D-N.Y.) pose for a photo with lawmakers and leaders from the semiconductor industry during an event at University at Albany on Dec. 11. (Maysoon Khan/Associated Press)

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ALBANY, N.Y. — New York state will spend $1 billion to expand research into chip technology in Albany, the state’s capital, with the goal of turning the region into a global center of semiconductor research and manufacturing, Gov. Kathy Hochul announced Dec. 11.

She said the investment will bolster New York’s case for federal grants under the CHIPS and Science Act, which will provide more than $52 billion for semiconductor research and manufacturing. It is part of a long-term plan to wrest control of the industry from competitors, particularly China.

“There’s a race for global domination. That’s why we’re here,” Hochul, a Democrat, said at a news conference where she was joined by chip industry leaders and both of New York’s U.S. senators. “And I’m here to announce that New York state will win that race.”

The plan eventually will create 700 new jobs and includes the purchase of a next-generation lithography machine for making computer chips, the officials said in a statement.

Under the plan, companies including semiconductor designer IBM and semiconductor manufacturer Micron will match the state’s $1 billion investment with another $9 billion. Part of that money will go toward construction of a chip research facility at the University at Albany.

Sen. Chuck Schumer (D-N.Y.) said the public-private partnership will help “make discoveries that engineers today don’t even fathom and making sure the future of the semiconductor industry, both research and manufacturing, is developed right here in upstate New York.”

New York officials didn’t release a timeline for hiring, or for industry investments.

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The announcement came as the Biden administration said it would provide $35 million in CHIPS Act funding for BAE Systems to increase production at a New Hampshire factory making chips for military aircraft.

New York has relied on incentives to nurture its semiconductor industry over the past several years, including a $1.4 billion package to land a chip plant near Saratoga Springs that broke ground in 2009. The state also pledged $5.5 billion in tax breaks to lure Micron to Syracuse.

— Associated Press writer Karen Matthews contributed from New York City.