Upstate New York has been trying to bolster its presence in the semiconductor industry and will get a major shot in the arm toward that effort if chosen as a "tech hub."
Buffalo, Rochester and Syracuse have submitted a joint application to the U.S. Economic Development Agency, which will designate 20 tech hubs around the country as part a competitive selection process. The EDA is part of the U.S. Department of Commerce and is overseeing the process.
Sen. Charles Schumer said if upstate is chosen for a tech hub as part of a bid to obtain up to $75 million in targeted federal funding, the designation would turn the I-90 corridor from Buffalo to Syracuse into "America's semiconductor superhighway."
Winning a big federal award would be a boon to the Buffalo area, as one of the three partners in the effort. The region’s technology sector is undersized compared to other metro areas. That’s been an impediment to the region’s economic growth, with the tech sector serving as a wellspring of good-paying jobs.
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New York State has been trying to make more headway in the semiconductor industry:
• Edwards Vacuum has committed to building a $319 million plant in a Genesee County business park, known as STAMP, to supply technology to the semiconductor industry.
• Further east down the Thruway, Micron Technology is preparing to build what could become a $100 billion semiconductor plant outside Syracuse.
Two Western New York congressmen like the chances of the area being designated as a national tech hub, which could come with up to $75 million in investment from the federal government.
• Gov. Kathy Hochul has signed “green chips” legislation to promote semiconductor development in the state, and recently announced about $40 million in FAST NY grants, to help prepare more sites for development, including for the semiconductor industry. Empire State Development is providing incentives to help secure the Edwards Vacuum and Micron projects.
Not every attempt to woo the semiconductor industry has succeeded. Business recruiters tried to attract a $17 billion Samsung chip plant to STAMP, but the tech company instead chose Texas for that project.
A stronger tech sector would boost the Buffalo Niagara region's overall economic growth, said Julie Anna Golebiewski, a Canisius University economist.
"I think in this environment, where tech is going to play an increasingly important role, and be a consistent source of job creation, it is important to have representation of that," she said.
Jobs in the tech sector tend to be higher paying, Golebiewski said, "and that creates further economic activity and sustains itself."
"I firmly believe upstate New York has everything it takes to help make that dream a reality, and help America maintain its competitive edge, all while taking us to the next frontier in technology," Schumer said.
Timothy Glass, the state Labor Department's regional economist in Buffalo, said Western New York has the workforce and academic institutions necessary to support greater development of the tech sector.
"We have the skilled workers, plus we have the tools in order to train these workers in a very short period of time, if need be," Glass said.
The federal tech hub program is designed to bolster innovation in areas outside of high-tech hotbeds such as Silicon Valley. The hubs will be geographically dispersed.
The EDA will designate about 20 regional Tech Hubs across the country, awarding them an initial $500,000 each, and then cut that down to three to eight recipients for the phase two grants, worth up to between $50 million and $75 million. The phase one awards are expected to be announced this fall.
"This program aims to invest in regions with the assets, resources, capacity, and potential to become globally competitive, within approximately 10 years, in the technologies and industries of the future," the EDA said. The agency did not respond to a request to comment on the number of applications it had received.
The upstate joint application for a tech hub designation – formally called NY SMART I-Corridor – focuses on the semiconductor industry, and has a vocal advocate in Schumer.
The Senate majority leader championed creating the tech hub program as part of the CHIPS and Science Act, and he made the case for selecting the upstate bid in a letter to the Commerce Department secretary.
Schumer said targeted funding through a tech hub designation would pay dividends on multiple fronts, including attracting suppliers; providing early stage-funding to launch new semiconductor companies from research and development; aligning higher education with workforce development to train new workers; and supporting underserved communities and businesses.
Schumer believes Buffalo, Rochester and Syracuse improved their chances by applying jointly, pooling their respective strengths in workforce, industry and academic institutions.
"These three cities are a triple threat, in terms of how strong they are in getting this grant," he said.
Rep. Brian Higgins and Rep. Nick Langworthy have also pushed for the designation for upstate New York.
“The United States is positioning itself to be a global leader in semiconductor production and Western New York is the community ready and able to deliver on this goal,” Higgins said.
If the upstate entry is ultimately selected for a hub, Schumer predicted far-reaching effects on jobs and attracting young people to the region.
"It's going to make us one of the centers of tech in the country, period," he said.
Matt Glynn
Upstate New York makes push for tech hub funds - Buffalo News
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