Upstate New York’s three biggest cities — Rochester, Buffalo and Syracuse — made it through the first round of cuts in the $10 billion federal Tech Hub sweepstakes as they vie for a chance to build a semiconductor super-highway along Interstate 90 to support tech giant Micron’s $100 billion investment.
The region joins Binghamton as one of 31 finalists to make it to the next phase of a competition that attracted nearly 200 bidders from metropolitan regions across the U.S.
The five-year Tech Hubs program, earmarked by Congress in the CHIPS and Science bill, is backed by $500 million in allocations the first year. The five winners will be chosen in the coming months.
The U.S. Economic Development Administration’s decision to choose both New York entries was seen as a hopeful signal of what’s to come by their biggest cheerleader, U.S. Sen. Charles Schumer, D-N.Y.
“I pulled out all the stops to land this Tech Hub designation for my great home state — making the case that bringing together these three cities and giving them the resources to combine forces would create an unstoppable engine that will rev the region’s industries to life and make Upstate New York a global center for semiconductors,” he said.
Schumer plans to tour western New York today to trumpet the announcement.
The money will go toward attracting companies, supporting start-ups and training workers, as the U.S. tries to gain ground in an industry dominated by China, a vulnerability highlighted during the pandemic when chip shortages crippled some supply chains.
Supporters hope the funding will invigorate upstate manufacturing hubs bruised by overseas defections and stem the diaspora of talent produced by the region’s top-flight universities.
What is Micron’s tech investment for New York state?
Micron’s 2022 announcement of a $100 billion investment that promises to create 9,000 jobs at one of the country’s largest chip facilities in the Syracuse suburb of Clay, has begun to reframe discussions about the upstate job market into one of hope, at least when it comes to the technology sector.
“At the turn of the previous century, western New York led the world in innovation, harnessing hydropower to light streets, homes, and manufacturing plants, to creating innovative components which went into a myriad of commercial and consumer products,” said Peter Ahrens, the head of the Buffalo Niagara Manufacturing Alliance.
“These funds will serve to reinvigorate the thought leadership our communities possess to power our nation and the world into the 23rd century,” he added.
Several initiatives are already underway.
Edwards Vacuum recently announced plans to invest $300 million in a dry pump manufacturing facility that will supply the semiconductor industry. And Corning Inc., which supplies glass for the microchip industry, has invested $139 million in Monroe County.
Schumer says the Buffalo-Rochester-Syracuse entry, officially known as the New York Semiconductor Manufacturing and Research Technology Innovation, or SMART, Corridor Consortium, will deliver tens of thousands of jobs across sectors, from electricians, pipe fitters and construction workers to engineers with doctorates.
The consortium will bring together some 80 representatives from industry, higher education, organized labor and the public sector.
Binghamton NY’s battery research and manufacturing
Binghamton’s selection was credited to its emerging role in cutting-edge battery research and manufacturing, led by Binghamton University’s Nobel Prize-winning professor M. Stanley Whittingham.
Last fall, the university’s New Energy New York project was awarded nearly $114 million in federal and state grants through the Build Back Better Regional Challenge. Another $3 million was awarded in September through the Appalachian Regional Commission.
The funding is being used to turn the Southern Tier into a nation-leading hub of battery manufacturing and development. The grants will assist BU’s efforts to bring battery startups and supply chain companies to the region, while supporting local workforce training programs in the industry.
iM3NY, a lithium-ion battery manufacturer with ties to BU, has begun ramping up operations at its gigafactory in nearby Endicott. Industry officials project it could create 8,000 jobs over the decade.
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Barbara Terrio is a seasoned business journalist, delving into the world of finance, startups, and entrepreneurship. With a knack for demystifying complex economic trends, she helps readers navigate the business landscape. Outside of her reporting, Barbara is an advocate for financial literacy and enjoys mentoring aspiring entrepreneurs.
