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Micron Technology officials announced on Tuesday the company would invest up to $100 billion in a new semiconductor fabrication facility in the town of Clay, just north of Syracuse, alongside Gov. Kathy Hochul and Sen. Chuck Schumer (D-N.Y.).

Micron, one of the largest manufacturers of semiconductors – chips for electronic devices– in the world, said in a Tuesday press release that the facility will bring around 9,000 high-paying jobs with the company in addition to creating another 50,000 jobs in New York state.

The announcement follows years of negotiation and efforts by state officials, which professors in the Martin J. Whitman School of Management said will lead to opportunities and an increase in the standard of living for Central New Yorkers.

“This is a historic and unbelievable stroke of fortune for the Central New York region,” wrote Patrick Penfield, a professor of supply chain practice in Whitman, in an email to The Daily Orange. “This is government in action and shows that by having politicians working together we can make remarkable things happen!”

The 2022 CHIPS and Science Act, which President Joe Biden signed into law in early August, aims to incentivize investment in domestic semiconductor manufacturing through actions including $24 billion in tax credits for investments in the industry. In New York state, the Green CHIPS Act signed two days after the federal bill allocates $10 billion in economic incentives for sustainable semiconductor manufacturing.

Without the legislation and other incentives drawing Micron to the state, Whitman finance professor Peter Koveos wrote in an email to The D.O. that semiconductor manufacturing companies would most likely invest overseas. David Lucas, an assistant professor of entrepreneurship, also said tax incentives were a major factor in the decision to invest in the U.S. and in New York state.

“Of course, the community can thank state and federal taxpayers for the billions in generous subsidies that made this investment attractive,” Lucas said.

Empire State Development, a New York state construction agency, offered Micron an incentive of up to $5.5 billion in tax credits over a period of 20 years, according to a news release from Hochul. New York state also agreed to invest $200 million in road and other infrastructure improvements in the area surrounding the facility.

New York state and Micron both committed to invest a total of $500 million in a Green CHIPS Community Investment Fund as part of the agreement, with Micron investing $250 million, ESD investing $100 million and other partners accounting for the remainder, according to the release.

"I have never been more optimistic about our future." -Chancellor Kent Sevyrud

Earlier today, #SyracuseU hosted leaders from @MicronTech as they announced a historic investment of up to $100 billion in Central New York over the next 20-plus years.

:book::arrow_heading_down: https://t.co/vQd30mLSZ2

— Syracuse University (@SyracuseU) October 4, 2022

With the creation of the semiconductor manufacturing facility, Onondaga County and SU have committed to a joint investment of $10 billion to create a semiconductor research and development initiative at the Syracuse Center of Excellence. Assistant Professor of Entrepreneurship Cristiano Bellavitis emphasized the opportunities that the facility will provide at SU and pointed to the “innovation ecosystem” that will surround Micron.

“The university has the potential to be at the center of all this by training students and providing (a) strong labor force for the companies joining in,” Bellavitis said. “Our strong entrepreneurship department could also help by fostering an entrepreneurial mindset in our students, and helping them be the entrepreneurs of the future.”

Both Hochul and Schumer emphasized their goal for New York state to lead the nation and be a “preeminent hub” for semiconductor manufacturing in their statements. Hochul cited the already “robust” industry’s 76 plants statewide and emphasized the opportunity for employment in modern manufacturing jobs for New Yorkers of “varying educational backgrounds.”

Rong Li, an associate professor of supply chain management, wrote in an email to The D.O. that one concern she had with the investment is the area’s lack of digital-age workers. Li pointed to Foxconn’s failed $100 million pledge in Wisconsin, and said in the case of Micron’s investment in New York state, talent and labor shortage is even more of a concern.

She said universities within the state will likely need to work with the government and Micron to quickly expand programs in information, technology and engineering.

Though it’s difficult to estimate how many jobs might actually be created, the implications of Micron’s investment pose high economic value and opportunity both in central New York and for the U.S., wrote Cameron Miller, an assistant professor in Whitman with research interest in technology strategy and innovation and evolutionary economics, in an email to The D.O.

“Even a more pessimistic estimate compared to what is being touted would still be a huge positive,” Miller said. “From the U.S. perspective, additional capacity for semiconductor production nationally is of strategic importance. From the CNY perspective, this is a major event.”

Published on October 6, 2022 at 1:16 am

Contact Jana: jlseal@syr.edu | @JanaLoSeal