Governor Hochul Celebrates Federal Award to Empower New York Businesses to Access Opportunities in the Semiconductor Supply Chain

Governor Kathy Hochul today celebrated a federal award from the U.S. Department of the Treasury for the Semiconductor Growth Access Program (SGAP), a new State-run initiative that will help existing Upstate businesses pivot or expand into New York's booming semiconductor supply chain ecosystem. The U.S. Department of the Treasury awarded New York State $9.45 million, with a match of $1.5 million from Empire State Development (ESD), to implement the program through the Treasury's Small Business Opportunity Program (SBOP) under the State Small Business Credit Initiative (SSBCI). SGAP will provide dedicated legal, financial, business planning and accounting technical assistance to targeted businesses to help them plan for growth and access capital to facilitate necessary upgrades and expansions. The program will cover the I-90 corridor from Western New York to the Capital Region and will be administered by ESD in partnership with Mohawk Valley Economic Development Growth Enterprises Corporation (EDGE), the Capital Region Center for Economic Growth (CEG), and the NY SMART-I Corridor Tech Hub. To date, SSBCI has been awarded to states on a formula basis, and this is the first time the federal government has made the process competitive.

"New York has become a global leader in high-tech manufacturing - and we're just getting started," Governor Hochul said. "This $9.4 million investment from the State Small Business Credit Initiative will be critical as we work to connect underserved and very small businesses with the resources they need to succeed. Working with the Biden-Harris Administration, we're creating even more jobs and opportunities for all New Yorkers."

U.S. Deputy Secretary of the Treasury Wally Adeyemo said, "The Biden-Harris Administration's economic agenda is driving historic investments, creating new opportunities for small businesses to grow and hire. With this funding, New York will help entrepreneurs across the state access capital and scale their operations in these critical industries that are key to strengthening our supply chains and national security."

SGAP will deliver high-quality, tailored support to strengthen the regional semiconductor and microelectronics manufacturing supply chain, while empowering diverse New York businesses to access lucrative opportunities in upstate New York's booming semiconductor ecosystem through technical assistance programs that provide legal, accounting, and financial services. The program builds on state, federal, local, and private sector programs and resources to build a more inclusive Upstate semiconductor manufacturing ecosystem.

The program will bring together three key partners spanning New York's I-90 corridor to deliver critical assistance to local small or disadvantaged businesses in underserved communities that can support successful implementation of CHIPS and Science Act investments - the NY SMART I-Corridor Tech Hub, Mohawk Valley EDGE and CEG. SGAP builds on the Supply Chain Activation Network (SCAN), a core component of the federally designated NY SMART I-Corridor Tech Hub aimed at supporting local firms to enter the rapidly expanding semiconductor and microelectronics market.

With over $112 billion in new capital investments announced, New York State is leading the nation in new semiconductor investments. The main drivers of this growth, Micron in Central New York and GlobalFoundries in the Capital Region, will spend billions in operating expenses and have pledged to achieve significant supplier diversity goals. These investments represent a once-in-a-generation opportunity to lift up New Yorkers from communities that have historically been left out of economic growth. SGAP will empower Very Small Businesses (VSBs) and underserved businesses to seize this unique opportunity and grow or pivot into New York's chip industry, ensuring a shared prosperity in Upstate New York.

Governor Hochul's Commitment to Growing New York's Semiconductor Industry
Governor Hochul has maintained a strong commitment to building a modern economy in New York State by growing a dynamic and innovative semiconductor industry. In 2022, the Governor signed New York's historic Green CHIPS legislation to make New York a hub for semiconductor manufacturing, creating 21st century jobs and kick-starting economic growth while maintaining important environmental protections. As part of the FY24 Enacted Budget, Governor Hochul secured a $45 million investment to create the Governor's Office of Semiconductor Expansion, Management, and Integration (GO-SEMI), which leads statewide efforts to develop the chipmaking sector. In December 2023, Governor Hochul announced a $10 billion public-private partnership - including $9 billion in private investment from IBM, Micron, Applied Materials, Tokyo Electron and other semiconductor leaders - to bring the future of advanced semiconductor research to New York's Capital region by creating the nation's first and only industry accessible, High NA EUV Lithography Center at the Albany NanoTech Complex. All of these efforts are positioning New York as an innovation leader ready to support one of three National Semiconductor Technology Center facilities that will be established under the U.S. CHIPS & Science Act.

New York is home to a robust semiconductor industry which supports more than 150 semiconductor and supply chain companies that employ over 34,000 New Yorkers. Thanks to Governor Hochul's efforts, the industry is continuing to grow with major investments from semiconductor businesses and supply chain companies like Micron, GlobalFoundries, AMD, Edwards Vacuum, MenloMicro and TTM Technologies to expand their presence in New York. In fact, in the last two years, chip companies have announced over $112 billion in planned capital investments in New York - more than any other state - and one in four U.S. made chips will be produced within 350 miles of Upstate New York. No other region in the country will account for a greater share of domestic production.

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 300,000 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.

Empire State Development President, CEO and Commissioner Hope Knight said, "Under Governor Hochul, New York is leading the nation in new semiconductor industry investment, and now, with additional federal support, we are poised to further scale up the state's broader billion-dollar advanced manufacturing ecosystem. US Treasury's award enables ESD to expand the economic opportunities created by Upstate's booming semiconductor sector to small businesses in underserved communities through our innovative Semiconductor Growth Access Program, which offers critical capital access and technical assistance so entrepreneurs can focus on the important work growing their businesses and creating jobs."

Senate Majority Leader Chuck Schumer said, "This major $9.4 million in federal funding will help provide critical technical assistance to small businesses across Upstate NY who want to grow in the semiconductor industry but can't do it alone. This is how we maximize the benefit of companies like Micron, GlobalFoundries, and Wolfspeed's expansions in Upstate NY, helping existing businesses grow and adapt to lead in the next frontier of technology. This will help boost efforts along the I-90 Tech Hub I secured and help Upstate NY build a robust supply chain from Buffalo to Utica to Albany that further positions Upstate NY as a global center for chip manufacturing. I fought to secure historic funding for the State Small Business Credit Initiative in the American Rescue Plan and urged Secretary Yellen to prioritize funding for supply chain development, including in the semiconductor industry, because I know that support for small businesses is critical to our efforts to bringing manufacturing back home to America. Today's federal investment further supercharges Upstate NY's growing semiconductor superhighway!"

Senator Kirsten Gillibrand said, "This federal award will be transformative for small and underserved businesses across New York. It will strengthen our economy and cement New York's reputation as a global leader in semiconductor manufacturing and innovation. I'm proud to have fought to pass the American Rescue Plan that provided the funds to make this grant possible, and I'll continue working for federal investments that support small businesses, create good jobs, and develop our workforce."

State Senate Majority Leader Andrea Stewart-Cousins said, "This federal award reflects New York's leading role in the growing national semiconductor industry. This $9.45 investment will be a boost to New York's local small businesses as it will help entrepreneurs in underserved communities access opportunities to grow within the semiconductor supply chain. This award is recognition of our robust efforts to ensure that the Empire State remains at the forefront of technological innovation. I want to thank Governor Kathy Hochul for her leadership in fostering entrepreneurship and technological advancement across the State."

Assembly Speaker Carl Heastie said, "This award helps to secure New York's position as the domestic epicenter of semiconductor manufacturing. But as we build New York's future, we must ensure that the impact of this investment spreads across all our communities. By expanding manufacturing and technical program access to small businesses, we're ensuring that everyone has the opportunity to benefit from the continued growth of the industry."

About State Small Business Credit Initiative

More than $500 million in federal funding has been allocated to support the resurgence of small businesses across New York State through the State Small Business Credit Initiative (SSBCI), a program through the American Rescue Plan Act. Managed by the U.S. Department of Treasury, SSBCI provides funds to support programs for small businesses, including underserved businesses and very small businesses (VSB), to recover from the economic effects of COVID-19 and allow them the opportunity to succeed in the post-pandemic economy. With this funding, Empire State Development (ESD) has developed a suite of capital access and equity programs to help New York State small businesses grow and succeed. Learn about the SSBCI programs that Empire State Development has established.

About Empire State Development

Empire State Development is New York's chief economic development agency, and promotes business growth, job creation, and greater economic opportunity throughout the state. With offices in each of the state's 10 regions, ESD oversees the Regional Economic Development Councils, supports broadband equity through the ConnectALL office, and is growing the workforce of tomorrow through the Office of Strategic Workforce Development. The agency engages with emerging and next generation industries like clean energy and semiconductor manufacturing looking to grow in New York State, operates a network of assistance centers to help small businesses grow and succeed, and promotes the state's world class tourism destinations through I LOVE NY. For more information, please visit esd.ny.gov, and connect with ESD on LinkedIn, Facebook and X.

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