Landmark Partnership Creates Largest Investment in a Manufacturing Project in New York State History; the New Megafab Will Create Nearly 50,000 Jobs, Plus Thousands of Prevailing Wage Construction Jobs
With Schumer's Historic Federal CHIPS and Science Act As the Fuse, and Utilizing New York's Innovative Green CHIPS Legislation, Micron Will Build Largest Clean Room in Nation; Agreement Establishes $500 Million Community Fund and Prioritizes Hiring for Disadvantaged Communities, Veterans, MWBE Contractors and Will Make Groundbreaking Commitments to Sustainability
Reps: This Is Our Erie Canal Moment — Micron's Investment Will Ensure the Future Is Made in America and Will Redefine Upstate NY's Role in the Global Economy for Generations To Come
Governor Kathy Hochul, U.S. Senate Majority Leader Charles Schumer, Onondaga County Executive Ryan McMahon, and Micron CEO Sanjay Mehrotratoday announced one of the largest economic development projects in U.S. history — a transformational public-private partnership with MicronTechnology to build a cutting-edge semiconductor manufacturing campus in Onondaga County, New York.
Micron, a U.S.-based memory and storage manufacturer and the fourth-largest producer of semiconductors in the world, will invest up to $100 billion over the next 20-plus years to construct the project, with the first phase investment of $20 billion planned by the end of this decade, creating nearly 50,000 jobs statewide — 9,000 new high-paying Micron jobs with an average annual salary of over $100,000 and over 40,000 community jobs — and create thousands and thousands of prevailing wage construction jobs. When complete, the complex will include the nation's largest clean room space at approximately 2.4 million square feet, the size of nearly 40 football fields.
This is another step for Micron to establish leading-edge memory manufacturing in the U.S. to meet the demand of consumer, industrial, and business products such as automotive and mobile, fueled by the adoption of artificial intelligence and 5G and make the United States more globally competitive. Modern manufacturing jobs at Micron will include opportunities for New Yorkers of varying educational and professional backgrounds from Central New York and beyond. This historic investment adds to New York's already robust semiconductor industry. New York is currently home to 76 semiconductor companies that employ over 34,000 New Yorkers, including global industry leaders like GlobalFoundries, Wolfspeed, onsemi, and IBM. New York is also home to the world-renowned Albany Nanotech Complex, which is a multibillion-dollar public-private partnership, comprising the most advanced, publicly owned, 300-millimeter semiconductor research and development facility and bringing together premier universities and leading industry players to drive cutting-edge chip development.
Central New York saw major American manufacturers and thousands of good jobs disappear when Agway Inc., Anaren Microwave, Carrier, Crucible, General Electric, Miller Brewing and General Motors closed their doors. Micron is bringing future-ready manufacturing back to Central New York by building a state-of-the-art memory chip manufacturing campus on 1,400 acres in the White Pine Commerce Park in the Town of Clay, north of Syracuse, creating economic opportunities for generations to come and returning good manufacturing jobs to Upstate New York. Micron will become one of the largest employers in the region, paying nearly double the average wage of Central New York.
Consistent with New York State's nation-leading Green CHIPS Act, Micron will draw its electricity from 100 percent renewable sources and make far reaching sustainability commitments. Micron will also implement a half-billion-dollar community investment framework to ensure that the project benefits the people and communities of Central New York.
Governor Kathy Hochul said, "Micron's $100 billion investment in New York marks the start of something transformative in scale and possibility for our state's economic future. I promised that we would jumpstart the economy by being the most business-friendly and worker-friendly state in the nation, and thanks to our State Green CHIPS legislation, the federal CHIPS and Science Act, and extraordinary partnerships with business, labor, and local and federal leaders, this project will do exactly that. Together, we are leveraging this investment — the largest private-sector investment in state history — to secure our economic future, solidify New York's standing as a global manufacturing hub, and usher the state into another Industrial Revolution."
Senate Majority Leader Charles Schumer said, "After years of work, it's official —Micron is coming to Central New York! With the CHIPS and Science bill I wrote and championed as the fuse, Micron's $100 billion investment in Upstate New York will fundamentally transform the region into a global hub for manufacturing and bring tens of thousands of good-paying high-tech and construction jobs to Central New York. This project is a dramatic turning point for a region that has faced decades of lost manufacturing jobs, and, in combination with New York's already robust microchip industry from the Hudson Valley, Albany, and the Mohawk Valley to Binghamton, Rochester, and Buffalo, it will put Upstate New York on the map in a way we haven't seen in generations. This is our Erie Canal moment. Just as the original Erie Canal did centuries ago, this 21st Century Erie Canal will flow through the heart of Central New York and redefine Upstate New York's place in the global economy for generations to come. Micron's investment will make New York's semiconductor corridor into a major engine powering our economy and will supply 'Made in New York' microchips to everything from electric vehicles, 5G, and defense technology to personal computers and smartphones. Today's announcement is the result of my long fight to bring manufacturing back to Upstate New York. The bottom line is that without the CHIPS and Science legislation, Micron would have decided to build its megafab overseas. This investment leaves no question that the future of microchip manufacturing will remain not just in this country, but in Syracuse specifically, and that our future will be built in Upstate New York, with Central New York as a global center of the chip industry."
Onondaga County Executive Ryan McMahon said, "Today's announcement validates what we have known all along — White Pine Business Park is the premier site in the Country for attracting an investment in the semiconductor industry, and we are thrilled to welcome Micron to our community. This is our generation's Erie Canal moment, and my administration is committed to meeting this pivotal and exciting moment in time. We will make sure that every neighborhood in every corner of the County feels part of this historic and transformational project. As important, this is a project that many people felt we weren't worthy of, but at the end of the day the greatest memory technology company in the world chose Onondaga County. Micron is going to invest one-hundred billion dollars to not only solve global demand challenges but to meet national security demands for this country. The decision by Micron to invest in Central New York and solve these problems not only supports our greater strategy for growing our community but validates our undeniable progress. I look forward to a long and successful partnership."
Micron CEO Sanjay Mehrotra said, "This historic announcement is a major win for Micron, for New York, and the United States. I am grateful for President Biden and his Administration for making the CHIPS and Science Act a priority, to Leader Schumer and a bipartisan coalition in Congress for passing the legislation, and to Governor Hochul and County Executive McMahon for their leadership and partnership. The combined efforts at the federal, state, and local level paved the way for Micron to realize the largest private investment ever made in New York state history. We are thrilled to make this significant investment in New York, making the Empire State the location of the biggest leading-edge memory site in the U.S. We chose this location for many reasons, but most importantly — Central New York offers a rich pool of diverse talent, including communities that traditionally have been underrepresented in technology jobs. This historic leading-edge memory megafab will deliver benefits beyond the semiconductor industry by strengthening U.S. technology leadership, as well as economic and national security, driving American innovation and competitiveness for decades to come."
Micron will develop a $100 billion semiconductor manufacturing complex over the next 20-plus years in multiple phases, with the first phase investment of $20 billion to planned by the end of this decade. Each phase is expected to include the construction and equipping of four memory fabs. Construction is expected to be pursuant to a project labor agreement, and workers will be paid, at a minimum, federal prevailing wage rates. Micron is also planning to spend 30 percent of its construction budget on work performed by Socially and Economically Disadvantaged Individuals, New York State-certified Minority and Women Business Enterprises, and Service-Disabled Veteran Owned Businesses.
This unprecedented investment is made possible through Schumer's historic, bipartisan CHIPS and Science Act that he led to passage earlier this year. Without this legislation, Micron would have decided to build its megafab overseas. The bill created an Investment Tax Credit for semiconductor manufacturing facilities and a first-of-its-kind $52 billion in federal incentives to spur American semiconductor research, development, manufacturing, and workforce training to bring these good-paying jobs back from overseas, strengthen national security, and reestablish America's technological leadership. The bill requires recipients of these incentives to make significant worker and community investments that support equitable economic growth. Similarly, under the performance-based incentives through New York State's Green CHIPS program, the project is estimated to result in a total benefit-cost ratio of approximately 20:1, meaning that Micron will directly spend $20 on capital investment, research and development, and salaries and wages for every $1 of support provided by New York State.
An economic impact study by Regional Economic Models, Inc. (REMI) estimates that the Micron project will generate transformative economic growth for Central New York and New York State. Over the course of the first 31 years of operations, REMI estimates that the project will:
- Create, on average, nearly 50,000 jobs in New York State per year, including 9,000 jobs directly with the company.
- Grow New York State's economy significantly, generating an additional $16.7 billion in real (inflation adjusted) economic output, on average per year and $9.6 billion in real Gross Domestic Product (GDP) on average.
- Provide an estimated annual average of $5.4 billion in real disposable personal income to New York residents.
- Generate an average annual increase of $556 million in state government revenue, totaling $17.2 billion over the first 31 years of the project, and an average annual increase of $826.1 million in revenue to local governments, totaling $25.6 billion over the same timeframe.
- Be one of the largest construction projects in North America, with construction spending of $31 billion and 5,600 related construction jobs on average at federal prevailing wage, for the initial 20 years.
COMMUNITY INVESTMENT COMMITMENT
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. More information on the Fund will become available in the coming weeks.
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."
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 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.