Empire State Development's Green CHIPS program to bring 20 years' worth of community investments
Pursuant to the requirements of ESD's Green CHIPS program, and those expected of the federal CHIPs and Science Act, Micron will commit to 20 years' worth of community investments. These investments will be supported by a $500 million Green Chips Community Investment Fund, seeded with contributions of $100 million by ESD, at least $250 million by Micron, and the remainder by local, statewide, and national partners.
Governor Kathy Hochul, Senator Chuck Schumer, Onondaga County Executive Ryan McMahon and Micron CEO Sanjay Mehrotra announce 100 billion private investment in mega-complex of computer chip plants in Central New York, creating 9,000 jobs over 20 years. It will be the largest single private investment in New York State history. (Mike Groll/ Office of Governor Kathy Hochul)
In accordance with New York's Green CHIPS program, ESD, and Micron will enter into a Green CHIPS Sustainability Plan to ensure that Micron will utilize 100 percent renewable energy for electricity with preferences for in-state sources. Additionally, all fabs and office buildings will be built to a minimum LEED Gold status, making the project one of the most sustainable chip fabs in the world.
Empire State Development President, CEO and Commissioner Hope Knight said, "Micron decided on New York State because of the tireless work at every level of government to make our state a place where companies such as Micron want to locate and grow. I want to thank Governor Hochul for her leadership, especially on the passage of the State's Green CHIPS program, and for her advocacy for the passage of the federal CHIPS and Science Act. For decades, we have been slowly regaining ground in the transition from traditional manufacturing to advanced manufacturing, and Micron's decision to locate in the Central New York Region is the momentum we need to succeed."
President and CEO of CenterState CEO Robert M. Simpson said, "The scale of Micron's semiconductor facility in Central New York is truly without comparison and will put our community at the forefront of semiconductor manufacturing. The investments and jobs that will be created by Micron will transform our community and have economic benefits that ripple across the state. For two decades, the leaders of this community have worked to create the kind of place that could support a project of this scale. I am exceptionally proud that Micron noticed our history of self-led revitalization efforts. Fast, leading-edge memory is critical to the growth of IoT, Smart Cities, 5G, and the UAS sectors, in which we have made targeted regional investments. Micron's presence in Central New York fills a critical gap in our long-term strategy to develop end-to-end solutions for the growing global demand for Smart Systems. I am incredibly proud of the work of our local, state, and federal partners, who teamed up to land this monumentally important project. Our team is ready to continue working with Micron to ensure its long-term success here. Micron, welcome to Central New York."
State Senator Jeremy Cooney said “Micron’s announcement is a transformational moment for Upstate, NY. Now, we are going to replicate its success to create more job opportunities up and down the thruway corridor. Moreover, this investment proves New York State is competitive with the rest of the nation when attracting advanced manufacturing back to American shores. If you want to re-populate upstate cities, then we need good paying jobs; this is a giant step forward. Thank you to President Biden, U.S. Senate Majority Leader Schumer, and Governor Hochul for their leadership and commitment to rebuilding the upstate economy.”
To attract this transformational, multibillion-dollar investment to New York, ESD has offered a package of performance-based incentives up to $5.5 billion in Green CHIPS Excelsior tax credits over two phases over 20 years. These targeted incentives are directly tied to Micron creating 9,000 new jobs, investing $100 billion, and meeting the Green CHIPS community benefits package and sustainability standards. The agreement also includes a commitment by New York State to invest $200 million for necessary road and other infrastructure improvements surrounding the campus, and $100 million in funding for community benefits as part of the $500 million Green CHIPS Community Fund. In addition, the New York Power Authority (NYPA) Board of Trustees will review a power allocation award from NYPA's low-cost ReCharge NY power program at a future public meeting.
"The scale of Micron's semiconductor facility in Central New York is truly without comparison and will put our community at the forefront of semiconductor manufacturing. The investments and jobs that will be created by Micron will transform our community and have economic benefits that ripple across the state." - Empire State Development President, CEO and Commissioner Hope Knight
The Onondaga County Industrial Development Agency and Micron will enter into a 49-year PILOT (Payment in Lieu of Taxes) agreement and abatement of state and local sales tax on construction expenses. The Onondaga County Department of Water and Environment Protection and the Onondaga County Water Authority will make necessary water and wastewater infrastructure improvements over the project lifecycle to support the project and surrounding community.
Onondaga County will provide:
A $5 million façade grant.
A $10 million investment in conjunction with Syracuse University to establish a semiconductor research and development initiative to be located at the Syracuse Center of Excellence.
A $5 million workforce sustainability grant to be disbursed over ten years to help fund local skills development for Onondaga County residents, in partnership with local institutions such as Onondaga Community College.
A $5 million workforce attraction grant to assist with hiring during the initial project ramp-up.
Semiconductors are vital to the nation's economic strength, serving as the brains of modern electronics, and enabling technologies critical to U.S. economic growth, national security, and global competitiveness. The industry directly employs over 277,000 people in the U.S. and supports more than 1.8 million additional domestic jobs. Semiconductors are a top five U.S. export, and the industry is the number one contributor to labor productivity, supporting improvements to the effectiveness and efficiency of virtually every economic sector — from farming to manufacturing.
Supply chain issues and a decline the United States' share of global chip production are causing undue hardships to every aspect of the economy. This erosion of U.S. chip production capacity puts the nation at a strategic disadvantage in several critical areas, including national security, technological innovation, and economic growth and independence. Because more than 300 industries use chips — from cars to cellphones — their scarcity drives up prices of other consumer goods. Senator Charles Schumer was instrumental in the passage of the bipartisan CHIPs and Science Act of 2022, which is a key priority of the Biden-Harris agenda and designed to create jobs and boost economic growth by investing in American semiconductor manufacturing. Micron's new facility will position New York State as a national leader in reshoring vital semiconductor jobs to the U.S., a top priority of Governor Kathy Hochul's agenda as laid out in her first State of the State, delivered in January of this year.
For more information and additional language translations see governor.ny.gov