In Albany, New York, Governor Kathy Hochul announced on Monday that the state will invest $1 billion to enhance research on chip technology. The aim of this investment is to transform the region into a leading hub for semiconductor research and production.

According to her, the investment will strengthen New York’s argument for receiving federal grants authorized by the CHIPS and Science Act. This legislation will allocate over $52 billion towards semiconductor research and production. The goal is to gain dominance in the industry and reduce competition, specifically from China.

“We are currently in a competition for worldwide control. This is the purpose of our presence,” stated Hochul, a member of the Democratic party. She made this announcement at a press conference alongside leaders in the chip industry and both of New York’s U.S. senators. “I am proud to declare that New York state will emerge victorious in this race.”

A statement from officials announced that the plan will result in 700 new job opportunities and involve obtaining a state-of-the-art lithography machine for producing computer chips.

According to the proposal, businesses such as IBM and Micron, which design and produce semiconductors, will contribute $9 billion to the state’s $1 billion investment. Some of this funding will be used to build a chip research center at the University at Albany.

Senator Chuck Schumer stated that the collaboration between the public and private sectors will aid in generating advancements that even today’s engineers cannot imagine. This will ensure that the semiconductor industry’s future, including research and production, is established in upstate New York.

Officials in New York have not provided a timeline for hiring or for investments in the industry.

The Biden administration has announced that they will be allocating $35 million in funds from the CHIPS Act to BAE Systems. This money will be used to boost production at a factory in New Hampshire, specifically for creating chips used in military aircraft.

Over the past few years, New York has utilized incentives to support the growth of its semiconductor industry. This includes a $1.4 billion deal to secure a chip plant near Saratoga Springs, which began construction in 2009. Additionally, the state has promised $5.5 billion in tax breaks to attract Micron to Syracuse.

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Karen Matthews, a writer for the Associated Press, provided contributions from New York City.

Maysoon Khan is a participant in the Associated Press/Report for America Statehouse News Initiative. Report for America is a charitable program that assigns reporters to regional news organizations to cover neglected topics. Keep up with her on X, previously known as Twitter, by following @MaysoonKhan.

Source: wral.com