New York's $10B Gamble: Can It Become the Next Big Hub in the Global Chip Race?

New York State is embarking on a $10 billion investment to establish a cutting-edge semiconductor research facility at the University at Albany. 

This initiative collaborates with prominent chip companies, overseen by NY Creates, the nonprofit managing the Albany NanoTech Complex. 

The facility will be equipped with the world's most advanced chip-making equipment from ASML Holding NV ASML, a Dutch company renowned for its sophisticated machinery.

The project, endorsed by Governor Kathy Hochul's office, involves vital industry players such as International Business Machines Corp IBM, Micron Technology Inc MU, Applied Materials Inc AMAT, and Tokyo Electron, the Wall Street Journal reports. 

These partners aim to pioneer next-generation chip manufacturing technologies aligning with New York's goal to become a significant research hub under the $53 billion Chips Act, which includes a provision for $11 billion towards a National Semiconductor Technology Center to advance domestic chip research and development.

ASML's equipment, notably its extreme ultraviolet light (EUV) machines, is central to this endeavor. 

The Albany facility will host the next generation of these systems, called high-NA EUV, to enter commercial production by 2025. 

This ambitious project will likely create 700 jobs and attract at least $9 billion in private investment. 

New York State contributes $1 billion to acquire ASML equipment and construct a 50,000-square-foot building dedicated to chip manufacturing. The construction phase is estimated to last approximately two years.

This initiative is part of a larger strategy to bolster domestic chip production and reduce reliance on foreign technologies amidst geopolitical tensions and strategic needs. 

Also Read: Micron Technology to Forge with Advanced AI Chips in Taiwan and Japan

New York, with its existing chip manufacturing infrastructure, including facilities operated by GlobalFoundries Inc GFS, ON Semiconductor Corp ON, Wolfspeed, Inc WOLF, and the upcoming Micron factory near Syracuse, is poised to become a key player in the semiconductor industry.

The Japanese government overhauled its chip strategy to triple sales of domestically produced semiconductors to over 15 trillion yen ($108 billion) by 2030.