BUFFALO, N.Y. — The federal government has already designated Interstate 90 between Buffalo, Rochester and Syracuse as the nation’s only federal technology hub for the semiconductor industry.
Tom Kucharski, president and CEO of Invest Buffalo Niagara, which helped each area apply for the designation, said this is something he and other economic development organizations are pitching to site selectors and businesses. He said that it has become an effective point of differentiation.
“These projects are very large, very expensive, and as technology continues to grow and innovate, projects get bigger and more expensive, so you have to work closely with the people in charge. There’s the federal government and your state government,” he said.
Kucharski said having a shovel-ready site with modern power infrastructure is essential to attracting business. In her State of the State address Tuesday, Gov. Kathy Hochul said the strategy was successful in attracting Micron, a cornerstone of the state’s upstate technology hub, and that her administration would ramp up similar efforts.
“Microchip fabs, data centers and supercomputers powering AI all require huge amounts of energy, and we have already begun developing additional strategies to support these industries.” said Hochul.
Although the governor did not mention it directly in his speech, the proposal to create a new semiconductor supply chain layer in the state’s Excelsior Tax Credit program was part of his overall statement of state. It would provide businesses with a 7% credit to meet work goals and 3% on investments.
“It’s easy to use,” Kucharski said. “The site selectors who are advising them are familiar with this technology, having already used it with other companies. This allows them to incorporate it into their models and improve our competitiveness. It’s a smart decision to expand the program because we can create metrics that are already working. ”
Kucharski said the proposed state loan would nicely complement a federal program that provides grants to build on shovel-ready legacy industrial sites, similar to the Onshore Act that President Joe Biden signed last week. He said it would become a thing. He expects the new administration will continue to support efforts to attract business to the United States, but said buy-in is needed at all levels.
“I don’t see how we can do this effectively without national leadership, commitment and investment,” Kucharski said.
