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Governor Hochul Celebrates Biden Administration’s $6.1 Billion Investment in Micron to Grow the Semiconductor Industry in the United States. Pros and Cons.

Announcement Builds on Governor Hochul’s Continued Commitment to Establish New York State as a Global Hub for Semiconductor Manufacturing and R&D

President Biden Announces Upstate New York as National Workforce Hub

Newly Enacted FY 2025 Budget Cements $500 Million in Additional Capital Investment at NY CREATES’ Albany NanoTech Complex to Jumpstart $10 Billion Partnership for Next-Generation Chips Research

Budget Includes $200 Million Investment to Support Four ON-RAMP Advanced Manufacturing Training Centers – Including Flagship in Central New York – to Prepare New Yorkers for Jobs of the Future

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Governor Kathy Hochul today celebrated the up to $6.1 billion investment by the Biden-Harris administration’s Department of Commerce in Micron Technology, which will be dramatically expanding its domestic memory chip manufacturing in the United States, and the announcement by President Biden that Upstate New York will be designated as a National Workforce Hub. Both federal and state incentives were essential to secure Micron’s $100 billion investment in the White Pine Industrial Park in the town of Clay in Onondaga County – one of the largest economic development projects in U.S. history. This federal funding through the CHIPS and Science Act builds upon $5.5 billion in performance-based Green CHIPS incentives provided by New York State that are directly tied to Micron creating 9,000 new direct jobs, investing $100 billion in New York State, and achieving the Green CHIPS community benefits package and sustainability standards for their Clay facility. In total, the project is expected to create nearly 50,000 jobs statewide, including an average of 5,600 construction jobs per year paying federal prevailing wage. When complete, the complex will include the nation’s largest clean room space at approximately 2.4 million square feet, grow domestic semiconductor manufacturing, and enhance our national security by expanding the United States’ chipmaking capacity. Additionally, Micron’s commitment to New York State builds on Governor Hochul’s successful efforts to establish New York State as a global hub for semiconductor research and manufacturing in the newly enacted FY 2025 Enacted Budget.

“As the first Governor from Upstate New York in more than a century, I knew we needed to revitalize the Upstate economy and transform New York State into a national leader in semiconductor manufacturing and research. The combination of federal funding and our Green CHIPS program is the formula for success,” Governor Hochul said. “I spent months advocating for Micron to come to New York and this megafab will be a game changer, setting the stage for regional transformation. This is just the beginning of what we’ll accomplish together, but none of it would be possible without the partnership of President Biden, Commerce Secretary Raimondo, New York’s congressional delegation, the New York State Legislature and our local stakeholders.”

Empire State Development President CEO and Commissioner Hope Knight said, “New York State is taking tangible steps to restore the semiconductor industry. Under Governor Hochul’s leadership we are paving the way for economic growth by ensuring that companies like Micron are growing in New York State in a way that promises real community benefits for the surrounding communities and ensures a clean and green manufacturing process. By partnering on both the federal and local levels we are seeing great progress for all New Yorkers that will pave a positive path forward for decades to come.”

New York Power Authority President and CEO Justin E. Driscoll said, “NYPA is proud to have played a critical role in bringing Micron to New York by leveraging nearly 550 megawatts of low-cost hydropower and discounted market power in support of the firm’s historic investment in New York, which is now a global leader in semiconductor manufacturing. It’s necessary to attract the industries of tomorrow to our state, spurring transformative economic growth that will have a lasting benefit for future generations of New Yorkers.”

Senate Majority Leader Charles Schumer said, “This monumental and historic federal investment will power Micron to bring to life its transformative $100+ billion microchip mega-fab project in Central New York, creating an estimated 50,000 good-paying jobs and rebuilding the Upstate New York economy one microchip at a time. This project is a rebirth, a dramatic turning point for Upstate New York, and will reverse decades of lost manufacturing jobs and make the region a global epicenter for cutting-edge microchip manufacturing. Central New York will be the beating heart of America’s most advanced memory chip production and the comeback of American manufacturing. Without the federal incentives funded by the CHIPS & Science Law I crafted and led to passage, Micron’s mammoth project would not be happening. I wrote the CHIPS & Science Law with Upstate New York – and investments like Micron’s – as my north star, and it is exciting and wonderful that this vision is becoming a reality.”

Senator Kirsten Gillibrand said, “This funding will be transformative for Syracuse, helping to create tens of thousands of good-paying jobs and strengthening Central New York’s reputation as a global leader in semiconductor manufacturing. I fought to pass the CHIPS and Science law to make this funding possible, and I was proud to advocate to the Biden administration to make sure that Central New York would reap the benefits of this transformative legislation. I’m thrilled that President Biden is able to visit Syracuse to see Micron in action, and I look forward to working closely with him to bring even more investment and opportunity to New York.”

This is just the beginning of what we’ll accomplish together, but none of it would be possible without the partnership of President Biden

Governor Kathy Hochul

Today’s announcement complements the ongoing partnership between Micron and New York State that was forged in October 2022 when Micron chose Central New York for its megafab. Governor Hochul has worked closely with local, state and federal partners to prepare for Micron’s arrival and make continued investments in the community.

  • In October 2023, Governor Hochul unveiled plans for the $15 million, 5,000 square-foot Micron Cleanroom Simulation Lab at Onondaga Community College, which will help to train students in Central New York for jobs at Micron.
  • Governor Hochul has continued to work with Micron to provide access to reliable and affordable child care for Micron employees, including future on-site child care options on Micron’s Clay campus.
  • Micron has made significant investments that will benefit Central New York families, including $500,000 to the YMCA of Central New York to help expand access to high-quality child care and early learning for underserved communities in the region.
  • Micron also announced funding for the Early Childhood Career Pathways Program, administered by Childcare Solutions and PEACE Inc., to expand family home child care centers.
  • Micron, in partnership with Empire State Development, will establish a $500 million Green CHIPS Community Fund to ensure that the area directly benefits from the company’s presence.

Additionally, Governor Hochul also established the Micron Community Engagement Committee to guide the investment strategy for the $500 million Community Investment Fund. The committee will produce a Community Priorities Document in the coming months that builds off robust community engagement. The Committee has already reached over 8,300 people, both in person at community forums and via web-based surveys, and continues to listen and learn about how Micron’s presence can help the region.

Governor Hochul is prioritizing the semiconductor industry as part of the FY 2025 Enacted Budget. The Governor secured an additional $500 million capital investment for NY CREATES’ Albany Nanotech Complex with total State investment of $1 billion to jumpstart a $10 billion partnership that will bring a cutting-edge High NA EUV Lithography Center to the Complex. The Governor announced the partnership with IBM, Micron, Applied Materials, Tokyo Electron and other leaders from the semiconductor industry last year as part of her commitment to establishing a global hub for semiconductor manufacturing in New York. Once completed, this new center will build on other semiconductor-related investments to make New York home to the first publicly owned High NA EUV Lithography Center in North America, support the long-term growth of New York’s tech economy, and create and retain thousands of direct, indirect and union construction jobs.

The Budget also includes a $200 million investment to establish One Network for Regional Advanced Manufacturing Partnerships (ON-RAMP) – a network of four new workforce development centers to prepare New Yorkers for the jobs of the future. As the state continues to attract 21st century businesses in fast-growing industries like semiconductor manufacturing, ON-RAMP will offer credentials and training related to advanced manufacturing and help expand opportunities for disadvantaged populations. The program will focus on strategic, high-impact locations in upstate New York, including a flagship facility in Syracuse overseen by CenterState CEO.

Additionally, Governor Hochul has secured $100 million in additional funding for the Focused Attraction of Shovel-Ready Tracts New York (FAST NY) program. Launched in December 2022, FAST NY has awarded more than $175 million to prepare more than 2,500 acres across 20 sites in every Upstate region for shovel-readiness, a key feature businesses seek when looking to locate.

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 300,000 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 number one contributor to labor productivity, supporting improvements to the effectiveness and efficiency of virtually every economic sector — from farming to manufacturing.

New York’s is home to a robust semiconductor industry of 156 semiconductor and supply chain companies that employ over 34,000 New Yorkers. Under Governor Hochul’s leadership, the industry is continuing to expand with major investments from semiconductor businesses and supply chain companies like Micron, GlobalFoundries, AMD, Edwards Vacuum, Menlo Micro and TTM Technologies to expand their presence in New York.

April 25 2024 Albany NY

Critics may raise several concerns regarding the involvement of government officials in business ventures, as exemplified in the case of Governor Hochul’s celebration of the Biden administration’s investment in Micron:

  1. Conflict of Interest: When government officials champion specific companies or industries, there’s a risk of perceived or actual conflicts of interest. Critics may question whether Governor Hochul’s advocacy for Micron aligns with the broader interests of New York State or if it reflects personal or political agendas.
  2. Potential for Corruption: Direct involvement of government officials in securing investments for specific companies, especially in such large-scale projects, raises concerns about potential corruption or favoritism. Critics may worry about the influence of corporate interests on government decisions and whether fair and transparent processes were followed in securing the investment.
  3. Market Distortion: Government intervention in the private sector can distort market dynamics and competition. Critics may argue that by providing significant incentives and support to companies like Micron, the government may be artificially propping up certain industries or players, potentially at the expense of others.
  4. Risk of Failure: Large-scale investments like the one in Micron involve significant financial risks, and critics may question whether it’s appropriate for government funds to be used in such ventures. If the investment fails to deliver the promised economic benefits or if Micron doesn’t fulfill its obligations, taxpayers could bear the brunt of the losses.
  5. Missed Opportunities: By focusing on specific companies or industries, there’s a risk of overlooking other areas of potential growth and development. Critics may argue that government resources and attention should be more broadly distributed to support a diverse range of businesses and sectors, rather than concentrating on a few high-profile projects.

Overall, while government involvement in economic development can bring benefits such as job creation and industry growth, critics may caution against overreach and advocate for greater transparency, accountability, and consideration of the broader public interest in such endeavors.

Source: Midtown Tribune newshttps://www.governor.ny.gov

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