New York state invests $10 bn in semiconductor research facility

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New York state invests $10 bn in semiconductor research facility

New York state invests $10 bn in semiconductor research facility

Industry News
Dec 15,23

The project, overseen by the nonprofit NY Creates, will take place at the Albany NanoTech Complex and will involve the acquisition of advanced chip-making equipment from the Dutch company ASML Holding.

New York state invests $10 bn in semiconductor research facility

Chip companies are teaming up with the state of New York to invest $10 billion in a cutting-edge semiconductor research facility at the University at Albany. The project, overseen by the nonprofit NY Creates, will take place at the Albany NanoTech Complex and will involve the acquisition of advanced chip-making equipment from the Dutch company ASML Holding. This equipment, with a price tag in the hundreds of millions, is crucial for producing the most advanced chips.

Once the equipment is in place, the collaborative effort, which includes major players like IBM, Micron Technology, Applied Materials, and Tokyo Electron, will embark on next-generation chip manufacturing. New York Governor Kathy Hochul's office anticipates that this initiative will not only create 700 jobs but also attract a minimum of $9 billion in private investment. The state is committing $1 billion for the purchase of ASML equipment and the construction of a 50,000-square-foot chip-manufacturing facility, with a construction timeline of approximately two years.

The Albany NanoTech Complex, initiated in the 1990s and expanded over the years, aims to contribute to New York's bid for recognition as a research hub under the Chips Act, a $53 billion initiative from the previous year. This federal legislation allocates $11 billion for the establishment of a National Semiconductor Technology Centre, fostering domestic chip research and development.

As concerns grow over China's influence in the semiconductor industry, both federal and state-level authorities in the U.S. have prioritised expanding domestic chip manufacturing and research. The ASML machines to be installed in Albany employ advanced processes involving lasers and tiny droplets to imprint transistor outlines on silicon. The high-NA EUV systems, slated for installation in Albany and expected to be used in commercial chip production by 2025, represent the next generation of this technology.

The endeavour also aligns with the broader US strategy to incentivise chip manufacturing through legislation like the Chips Act, while simultaneously imposing tighter export controls to limit China's access to sophisticated AI chips and chip-making equipment. New York, already home to major chip factories, stands to benefit from these initiatives, with companies like Micron planning substantial investments in large-scale manufacturing facilities with hopes of securing funding through the Chips Act.

Source: Mint