Micron to bring microchip plant to upstate New York – Saratogian

NEW YORK (AP) — Micron, one of the world’s largest microchip makers, announced Tuesday that it would open a semiconductor plant in upstate New York, promising a long-term investment of up to $100 billion and a plant that could create 50,000 jobs in the state.

The company was attracted to the Syracuse area with the help of a generous set of federal, state and local incentives, including up to $5.5 billion in state tax credits over 20 years.

The announcement comes after Senate Majority Leader Charles Schumer, D-NY, pushed Idaho-based Micron and company CEO Sanjay Mehrotra to consider upstate New York for his factory. It also comes months after Congress passed the $280 billion Science and CHIPS Act, which set aside $52 billion to boost the semiconductor industry.

“An investment of this scale in the US is simply not possible without significant government and community support,” Mehrotra said in the announcement.

In addition to tax credits tied to investment and job creation, New York has pledged $200 million for road and infrastructure improvements where the plant is being built in suburban Clay and $100 million for a “community benefit” fund. The state will also review the supply of low-cost energy to the operation.

New York has a long history of providing financial incentives for businesses to locate or expand in the state, and critics question whether taxpayers consistently get their money’s worth. Democratic Governor Kathy Hochul recently defended her plan to spend $850 million of taxpayer money on a new stadium for her hometown Buffalo Bills.

Companies like Micron make the tiny chips that power everything from smartphones to computers to cars. The federal bill was intended to bolster America’s competitiveness against China and prevent another chip shortage like the one that derailed the auto and tech industries during the pandemic.

“Chips are essential to our economy, and if we were to lose the ability to make chips here in the United States, it would be a serious risk to both economic security and national security,” Schumer said in an interview with The Associated Press. “This will be the most advanced memory chip manufacturing facility in the United States and probably in the world. And it’s located in a place that will really benefit from it.”

The company plans to invest up to $100 billion over the next 20 years to build the project, with the first investment of $20 billion expected by the end of the decade. The deal is also expected to create more than 9,000 jobs at Micron, and officials believe it could also create about 40,000 other ancillary jobs in the region, from suppliers to contractors, the officials said.

After signing the $280 billion bill into law last month, President Joe Biden touted the investment in New York as proof that it was working.

“Today is another victory for America and another massive new investment in America fueled by my economic plan,” Biden said. “Micron, an American company, is investing $20 billion this decade and up to $100 billion over twenty years to manufacture CHIPS in upstate New York, creating tens of thousands of good-paying jobs. Together, we are building a bottom-up, middle-out economy where we cut costs for our families and do it right here in America.”

Headquartered in Boise, Idaho, Micron has several chip manufacturing plants around the world, including in Singapore and Taiwan. The company announced in September that it would invest $15 billion through the end of the decade in a new semiconductor plant in its hometown, which the chipmaker says will create 17,000 American jobs.

Manish Bhatia, Micron’s executive vice president of global operations, told the AP that New York was selected in large part because it has a history of developing semiconductors. New York is currently home to 76 semiconductor companies, according to Schumer.

“There is an ecosystem of other manufacturers, research institutions,” Bhatia said. “We think we can channel a lot of that talent” to the Syracuse area, including military veterans.

Bhatia also said the company needed a large site for a facility that could eventually span 2.4 million square feet. That also means having the water and power infrastructure to accommodate the production of memory chips, a sector he said is growing because the “big data era” requires even more capacity to process ever larger sets of information. large.

“This is like a 21st century Erie Canal,” Schumer said of the New York plant. “And just like the original Erie Canal did centuries ago, this will help cement the growth of our economy for decades to come, not just in upstate New York, but across the country, because these chips are so vital. for many of our cutting operations. -leading industries.”

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Associated Press writer Zeke Miller in Washington contributed.

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