Bill to bring billions for semiconductor industry passes Congress

Billions of dollars in federal funding for semiconductors could be on its way and upstate New York sites like the Marcy Nanocenter could see a piece of the action.

On Wednesday, the U.S. Senate passed a funding package that includes $52 billion in subsidies for semiconductor manufacturers. The bill passed the House on Thursday.

The bill provides opportunities for the microchip industry to grow within the United States instead of going overseas, said Steve DiMeo, president of Mohawk Valley EDGE. A dearth of domestic production was one factor in the supply chain disruptions sparked by coronavirus shutdowns.

Wolfspeed opened a $1 billion facility at the Marcy Nanocenter in May, joining Danfoss Silicon Power as local high-tech manufacturers. There is still space for a second Wolfspeed facility and three fabrication facilities, or fabs, for an additional client at the nanocenter.

“We believe that there’s opportunities to attract additional investment from other companies that we know have a need to expand,” DiMeo said. “We’ve had companies visit the site … Obviously having federal legislation in place was paramount for them to move forward with a decision to expand and expand in the U.S.”

A strong education base, shovel-ready sites, major research and development centers and necessary infrastructure make upstate New York a prime spot for semiconductor manufacturing, DiMeo said.

More:Wolfspeed is here. Millions in state aid paved the way to a shovel-ready Marcy Nanocenter

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The bill will reduce costs as the shortage of semiconductors has raised the price of cars, appliances and other devices that use chips, Senate Majority Leader Charles Schumer said at a virtual press conference.

“The grandchildren of every resident of upstate New York will have an opportunity for a really good-paying job because of these investments,” he said. “And I wrote this bill with the future of upstate New York in mind.”

Central New York is one of the regions that stands to benefit from the legislation, with Schumer mentioning the Marcy Nanocenter and White Pines Commerce Park in Onondaga County.

“They are uniquely sited for large chip manufacturers to come here and locate thousands of jobs here,” he said. “ … It will make Central New York positioned to be one of the places most likely to attract a new, big chip fab.”

Wolfspeed is expected to bring a total of 614 jobs by 2029. There were 265 employees working at the fab by its opening in April.

Senator Kirsten Gillibrand also touted the employment and security benefits of increasing the domestic chip industry in a statement.

“Over the past few years, U.S. consumers and companies experienced how our overreliance on foreign companies for semiconductors led to increased prices and the disruption of American supply chains,” Gillibrand said. “ … This bill will strengthen our national security, create good-paying jobs and pave the way for continued U.S. leadership in semiconductor technology, design and fabrication.”

Schumer was clear an emphasis of the bill was competition with China, comparing the investment in the semiconductor industry to the Space Race against the Soviet Union in the ‘60s.

“We’re going to go all out and we’re going to beat China,” Schumer said. “And who’s going to benefit? The families, the people, the workers, the consumers of upstate.”

The defense ramifications of the bill were also discussed by the majority leader, who noted the missiles being sent to Ukraine contain hundreds of chips and technology like AI and quantum computing has military applications.

The bill would also include funding for research funds to benefit sites like the quantum computing center at the Air Force Research Lab in Rome.

If the bill is signed by President Joe Biden, it could make for an even busier future for the Marcy Nanocenter.

“It has been amazing the amount of inquiries and activity and business we’ve had over the past 12 months up to the present,” DiMeo said. “There’s considerable interest in obviously seeing what happens with this legislation.”

Steve Howe is the city reporter for the Observer-Dispatch. Email him at showe@gannett.com.

This article originally appeared on Observer-Dispatch: Billions for semiconductor industry could boost Mohawk Valley business