Governor celebrates $40 million grant to boost New York's semiconductor sector

Federal Regional Technology and Innovation Hubs Grant will support semiconductor research, manufacturing, and workforce development along ‘NY SMART I-Corridor’ encompassing Buffalo, Syracuse & Rochester

Gov. Kathy Hochul announced the U.S. Department of Commerce awarded a phase two Regional Technology and Innovation Hubs (Tech Hub) grant of $40 million to the New York Semiconductor Manufacturing and Research Technology Innovation Corridor (NY SMART-I Corridor) consortium.

Her team said, “Over the next five years, the consortium will serve a critical role in supporting upstate New York’s continued growth into a globally competitive center of semiconductor workforce development, innovation and manufacturing – part of the continued transformation of the state’s rust belt cities into a brand-new innovation belt. Empire State Development has committed up to $8 million in match funding along with significant additional aligned resources to support the NY SMART-I Corridor and will serve as a member of the Tech Hub’s implementation steering committee.”

Hochul said, “With this transformative federal grant, New York is taking another major leap toward building Chips Country in our state. This award will help to bring the next generation of semiconductor research, manufacturing, and workforce training upstate and unlock even more funding – on top of our other state investments – to attract chipmaking businesses and jobs. From Micron’s historic investment to our first-in-the-nation chips research center in Albany, New York is all in on semiconductors and I thank the Biden administration, Majority Leader Schumer, Sen. Gillibrand and Congressman Morelle for ensuring we remain competitive in the global race for chips business.”

The NY SMART-I Corridor was awarded one of 31 Tech Hub designations by the federal Department of Commerce’s Economic Development Administration (EDA) in October 2023 from a pool of nearly 400 regional applications, and is one of only four semiconductor tech hub designations in the nation. The consortium comprises the Western New York, Finger Lakes and Central New York regions, and is convened by the Buffalo-Niagara Partnership, ROC2025, and CenterState CEO, respectively. It includes more than 80 members that include economic development organizations, government, workforce development, labor, industry, academia and nonprofits.

Hochul’s team said, “The Tech Hub will work to build a world-class semiconductor ecosystem across a range of focus areas including equitable workforce development and talent placement, research and commercialization pathways in partnership with leading academic institutions, chip manufacturing supply chain growth and development, and technology innovation. Managed by a multi-sector implementation governance committee, the consortium will serve as a key coordinating body for semiconductor industry growth alongside the Governor’s Office of Semiconductor Expansion, Management, and Integration housed within ESD.”

ESD President CEO and Commissioner Hope Knight said, “New York state’s efforts to re-shore the semiconductor industry in a way that emphasizes smart and strategic growth, equitable and diverse workforce development, and cutting-edge R&D and innovation are a model for the nation and the world. Funding for the Tech Hub provided by the Biden administration will help us realize this shared vision to build a thriving innovation sector, increase our domestic semiconductor supply chain, and protect our economic and national security – all while creating good jobs for all New Yorkers.”

President and CEO of the Buffalo Niagara Partnership Dottie Gallagher said, “I’m indebted to the 100-member consortium that helped bring this vision to life and create a groundbreaking new framework for regional collaboration, and to Gov. Hochul, New York state and Empire State Development whose strategic guidance and commitment were instrumental to our bid. I’m especially grateful to Sen. Schumer, whose vision served to create this opportunity and whose fierce and consistent advocacy, alongside that of Congressman Morelle and our entire delegation, ensured our bid rose to the top. And to the Biden administration, the Commerce Department, the Economic Development Administration, and the Tech Hubs program office – we’re enormously grateful for the confidence you’ve placed in our bid. And we’re ready to get to work.”

President of ROC2025 and NY Smart I-Corridor Tech Hub Regional Innovation Officer Dr. Joseph Stefko said, “Today’s announcement that the NY SMART I-Corridor is among the handful of newly funded federal Tech Hubs validates the power of collaboration, and serves as a significant inflection point for our entire region. Three years ago, we set out to build a new, coordinated vision for the Buffalo-Rochester-Syracuse corridor, one laser-focused on advancing semiconductor production and supply chain. The targeted investments this hubs funding enables – in workforce, innovation, and advanced manufacturing – position us to lead the way across the full semiconductor value chain, and in so doing, expand economic opportunity for all across our entire corridor. I would like to thank Sen. Schumer, the Biden administration and Gov. Hochul for their unwavering support for our bid.”

President of CenterState CEO Robert Simpson said, “New York’s I-Corridor is the first Tech Hub award winner in the nation, a firm signal to the world that this region is primed to lead the resurgence of advanced manufacturing and semiconductor production in the U.S. This investment and New York state’s matching support means that the very communities once left behind can now regain their rightful economic leadership position. The collaboration, vision and leadership of our community, including so many philanthropic, educational and private sector partners, as well as our elected officials are the true legacy of this work. We are grateful to Gov. Kathy Hochul for once again leveraging federal investments to accelerate the pace of our progress. This unified support ensures this region now has the resources to drive long-term growth. While we take a moment to celebrate this historic opportunity, we are more ready than ever to get to work and leverage this investment to maximize the economic impact that will be felt across our communities.”

Hochul’s team said, “Semiconductors are vital to the nation’s economic strength, serving as the brains of modern electronics, and enabling technologies critical to U.S. economic growth, national security, and global competitiveness. The industry directly employs over 277,000 people in the U.S. and supports more than 1.8 million additional domestic jobs. Semiconductors are a top five U.S. export, and the industry is the No. 1 contributor to labor productivity, supporting improvements to the effectiveness and efficiency of virtually every economic sector – from farming to manufacturing.”