Schumer: Upstate is on the verge of becoming a high-tech hub | News, Sports, Jobs


ALBANY – Upstate New York stands to be a major beneficiary of federal legislation that would inject $52 billion into promoting the growth of the nation’s semiconductor chip manufacturing industry, a said U.S. Senate Majority Leader Chuck Schumer, D-NY.

Some 80 semiconductor companies already have a presence in New York, with more than 34,000 employees collectively, Schumer said.

But the total number of jobs would be significantly boosted by efforts to put the upstate region in competition with California’s Silicon Valley as a high-tech hub, the senator added.

Schumer argued that the nation’s semiconductor industry is crucial to its future and security, with the upstate region an ideal location for such investments.

“China is trying to dominate this industry,” Schumer told reporters on a Zoom conference call. “We cannot leave them for our national security.”

He predicted that an increase in production of semiconductor chips at domestic production facilities will help bring inflation under control and curb the supply chain headaches that have plagued many industries, including manufacturing. computers and electric batteries.

“There is such a shortage that there is a backlog, and then the price skyrockets,” Schumer said in response to a CNHI query. “We produce enough chips, the price will come down. It will make cars, it will make appliances, it will make batteries and everything else cheaper.

There is even a link between chip shortages and rising grocery prices, with trucking companies being hit by microchip supply chain constraints, increasing the overhead costs of these companies and translating into increases in the food prices, Schumer said.

Schumer said he envisions the Western New York area specifically becoming one of 10 tech hubs in the country that would evolve from the bipartisan measure to provide new incentives for the expansion of the technology industry. fleas.

Other regions he mentioned include the Mohawk Valley, Central New York, the Capital Region, and the Hudson Valley, with the SUNY Oneonta campus, Binghamton University, the Cornell University, the University of Buffalo who all benefit from the relationships that would be fostered with the tech industry, Schumer said.

“At the end of the day, every area of ​​upstate New York will see dramatic benefits that they haven’t seen in years, in terms of jobs, if this bill passes, and it will be.” said Schumer.

The connection between the tech race and national security has become such a big issue in federal government circles that earlier this month Schumer scheduled a classified briefing of all senators on the need to do of the nation a leader in global innovation.

The Biden administration has also signaled that new support for the semiconductor industry is essential to deal with inflation and supply chain constraints.

The latest legislation has been described as a scaled-down version of a broader earlier measure that met with objections from some key Republicans.

The ingredients of the bill include $10 billion to be channeled towards the development of regional technology hubs, a 25% tax credit for the manufacture of semiconductors and the equipment used to manufacture them, some $500 million for a secure communications program, $200 million for employee training and more than $1 billion for wireless innovations.

According to Schumer’s office, only 12% of chips are now made domestically, down from 37% in the 1990s. Companies based in East Asia are responsible for 75% of global semiconductor production.

Two weeks ago, Schumer faced intense pressure from Sen. John Cornyn, R-Texas, who argued the Senate Majority Leader compromised the legislation by using it to sue a “Partisan spending spree.” Negotiations continued and the revamped bill passed a procedural milestone on Tuesday night in a 64-34 vote.

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