Upstate New York’s three largest cities — Rochester, Buffalo, and Syracuse — have successfully made it to the next round of the $10 billion federal Tech Hub competition, which aims to build a semiconductor super-highway along Interstate 90 to support Micron’s $100 billion investment. These cities, along with Binghamton, are among the 31 finalists out of nearly 200 bidders from metropolitan regions across the United States.
The Tech Hubs program, funded by the CHIPS and Science bill, received $500 million in allocations for the first year. The final five winners will be selected in the coming months. The decision to choose both New York entries as finalists has been seen as a positive sign for the region’s economic development by U.S. Senator Charles Schumer, who referred to it as an opportunity to create an unstoppable engine that will boost industries and make Upstate New York a global hub for semiconductors.
The funding from the Tech Hubs program will be used to attract companies, support startups, and provide training for workers in an effort to compete with China, which currently dominates the semiconductor industry. The goal is to address vulnerabilities highlighted during the pandemic, such as the chip shortages that disrupted supply chains. Additionally, supporters hope that the funding will revitalize upstate manufacturing hubs, which have suffered from overseas relocations, and retain talented individuals from the region’s top universities.
Micron’s $100 billion investment in the Syracuse suburb of Clay, announced in 2022, has sparked hope for the upstate job market, particularly in the technology sector. The investment is expected to create 9,000 jobs and reshape discussions about the region’s potential. Various initiatives are already underway, such as Edwards Vacuum’s $300 million investment in a dry pump manufacturing facility and Corning Inc.’s $139 million investment in Monroe County to supply the microchip industry.
Senator Schumer has named the Buffalo-Rochester-Syracuse entry as the New York Semiconductor Manufacturing and Research Technology Innovation (SMART) Corridor Consortium. He predicts that the consortium will generate tens of thousands of jobs across various sectors, including construction, engineering, and labor.
Binghamton’s selection as a finalist can be attributed to its role in cutting-edge battery research and manufacturing, spearheaded by Binghamton University’s Nobel Prize-winning professor, M. Stanley Whittingham. The university’s New Energy New York project has received significant federal and state grants, totaling nearly $114 million, to develop the Southern Tier into a leading battery manufacturing and development hub. One of the companies, iM3NY, has already started operations at its gigafactory in Endicott and could potentially create 8,000 jobs over the next decade.
Overall, the Tech Hub competition presents a significant opportunity for Upstate New York to strengthen its presence in the technology and semiconductor industries. With the backing of federal funding, the region aims to rejuvenate its economy, create new jobs, and become a center of innovation, ultimately bolstering its position in the global market.