Empire State Development (ESD), the umbrella organization for New York's two main economic development corporations, wants more Japanese chip industry suppliers to open operations in the state to support the upcoming manufacturing facilities of Micron Technology, the world’s fourth-largest semiconductor company.
“Last year, we were able to attract Micron to central New York. With the large investment that Micron is making, $100 billion, we know that we have to build an ecosystem to support that activity. That's why we're here on this mission: to talk to Japanese firms, some of Micron's suppliers, to come and locate in New York,” ESD President Hope Knight told Nikkei Asia.
While Knight did not name the companies she spoke to during her visit to Japan, she mentioned that some were “very excited about the possibility” of investing in the state.
Micron, the only memory and storage manufacturer in the United States, has announced plans to build a $100 billion “mega fab,” which will employ more than 9,000 people, near Syracuse in upstate New York.
Even before the CHIPS and Science Act became federal law in 2022, New York had unveiled its $10 billion program, called Green CHIPS, which offered tax incentives to chip manufacturers. Participants of Green CHIPS can benefit from zero corporate income tax rates and receive tax credits based on their capital spending and research and development expenditures.
“We customize a package for you,” said Knight, who emphasized that incentives are tailored based on various factors, like the number of jobs created and size of investment.
The ESD president highlighted the importance of bringing back chip manufacturing to the United States, citing national security concerns and geopolitical trends, and underscored New York's manufacturing legacy and its readiness to revive its manufacturing sector.
New York has prioritized chip manufacturing as a key industry for economic growth. Apart from IBM, 75 other semiconductor-related companies have made new investments in the state. And since the introduction of Green CHIPS, total investments have reached $112 billion.
On concerns surrounding the high cost of living and labor costs associated with New York City, Knight said that cities in upstate New York, such as Albany, Syracuse, Rochester and Buffalo, offer affordability and have cheaper sources of clean power.
As head of ESD, Knight works closely with Gov. Kathy Hochul in developing the state economy through various measures like financing, subsidies, and tax breaks. As of 2022, ESD has been involved in at least 190 projects.
