New York Secures Major Federal Investment for National Semiconductor Research Hub in State
The objective is to establish a highly skilled workforce while decreasing the country’s reliance on imported chips.
Upstate New York is set to become the site for a national center dedicated to cutting-edge semiconductor research, securing $825 million in federal funding to enhance the United States’ domestic production of computer chips.
The Albany facility will be a part of the National Semiconductor Technology Center (NSTC), along with two other federal labs. The center is officially named the NSTC Extreme Ultraviolet Accelerator and is projected to begin operations next year. The locations of the other two labs are yet to be disclosed.
New York won the bid for the EUV center over Oregon and other states, as per Schumer, who has advocated for years that his state is the ideal location for this investment, even inviting federal officials from Washington to visit the Albany campus personally.
Schumer and Hochul anticipate that these dual investments will cultivate a proficient workforce prepared to meet the needs of technology giants like Micron and IBM, while also reducing the country’s reliance on imported semiconductors—a concern highlighted by global supply chain disruptions during the COVID-19 pandemic.
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“By doing this, we can ensure that the advancements in semiconductors shaping the next century are labeled as ‘Made in America’ rather than being developed and manufactured in countries like China,” Schumer stated in the October 31 announcement.
“Today, Uncle Sam is declaring that Albany NanoTech is THE destination for fostering the next era of America’s technological progress.”
The $825 million funding will be supplied by the U.S. Department of Commerce under the bipartisan CHIPS and Science Law of 2022. This law’s $52 billion investment plan aims to enhance domestic semiconductor research and manufacturing, with an ambitious target for the United States to account for 20 percent of the world’s most advanced semiconductor chips by the end of the decade.
As of 2023, American manufacturers contribute approximately 12 percent to the world’s semiconductor supply—but none of the most advanced chips. The U.S. industry heavily depends on foreign suppliers, particularly in East Asia.
The escalating tensions between Taiwan and China have cast a shadow over the Taiwanese semiconductor industry. The Chinese Communist Party, although it has not governed Taiwan, asserts the region as a separatist province and has not ruled out the use of force to “unify” the democratic island with the authoritarian mainland.
Any conflict in the Taiwan Strait could have dire consequences for global supply chains, potentially triggering even more severe shortages of chips than those experienced since 2021. During that year, a drought in Taiwan deprived chip manufacturers of the ample water volumes needed, leading to widespread repercussions, including production cutbacks among American automakers.
“Due to a shortage of chips, Ford employees in locations like Michigan and Indiana only worked a full week three times throughout the entire year, even for basic things like windshield wipers,” stated Raimondo, emphasizing the risks of relying on foreign semiconductor supply chains.
