The green chips bill will bring big investments to New York

Earlier this month, the legislature, by a large majority and with the support of both parties, passed the country’s first Green Chips bill, which now gives our state a once-in-a-lifetime opportunity to change the economic trajectory of upstate New York.

The adoption of Green CHIPS modifies Excelsior Jobs’ long-standing tax credit program to better attract multibillion-dollar manufacturing facilities, further boosting New York’s competitiveness over other states vying for chip factories.

Green CHIPS will help strengthen our state as a national leader in an industry that produces one of the five largest exports to the United States and has the greatest contribution to productivity growth in the country. Combined with New York State’s long-standing investment in semiconductors, this allows New York to receive a higher percentage of federal aid and private investment from the Federal Semiconductor Benefit Generation Act (“CHIPS”). Regardless of when Congress is able to pass the CHIPS Act, New York has already taken steps to grow the industry here at a time when global competition is increasing.

The global shortage of chips hurts Americans where we can least afford it: our wallets. Problems with the supply chain and the decline in the share of the United States in world chip production are causing unnecessary difficulties in every aspect of the economy. This erosion of chip production capacity in the United States puts our nation at a strategic disadvantage in several critical areas, including national security, technological innovation, and economic growth and independence. As more than 300 industries – from cars to mobile phones – use chips, their shortage is raising the prices of other consumer goods. US Secretary of Commerce Gina Raimondo said it more frankly: The lack of chips, she said, is directly responsible for the biggest inflationary pressures we have endured in forty years.

Why is Green CHIPS important for New York?

• Work places. Each recipient of Green CHIPS will have to invest at least $ 3 billion in the state and create at least 500 jobs in the company. Locally, look no further than Malta and Marti for what the industry means to a community: GlobalFoundries, which has invested more than $ 15 billion in the region, is transforming the metropolitan area. Wolfspeed, which has just cut the ribbon of a billion-dollar factory in Mars, has already invested millions of dollars in internships, workforce development programs and curriculum improvements at SUNY and created hundreds of local, high-paying jobs in the Utica area .

Green CHIPS will attract more transformation projects that build on New York’s traditional manufacturing power and create new jobs at every level – not just engineering jobs that require advanced degrees, but jobs of the future for regions and peoples from our state who have suffered and need them the most.

• Community benefits. Based on similar provisions in the CHIPS Federal Law, Green CHIPS is a holistic and inclusive model of economic development for chip factories, ensuring that each project delivers real benefits for the community, including predominant pay, labor training and expansion programs. of opportunities for disadvantaged populations.

• Environment. Green CHIPS has the potential to reduce global greenhouse gas emissions by linking financial assistance to ensuring that more semiconductors are produced – which are critical components of sectors that will help combat climate change, such as electric vehicles, energy efficiency, storing energy and clean energy in a more sustainable production process, in line with the draft guidelines published by the New York State Climate Action Council.

• Accountability. Green CHIPS is a discretionary incentive to pay for performance. The companies will not receive any state aid until they meet their annual commitments for work, investments and other commitments under the project.

The leader of the majority in the US Senate Charles Schumer and other members of the congressional delegation in New York are playing their part, working for the adoption of the federal law CHIPS. With the passage of Green CHIPS, New York has shown that we are ready to do our part to tackle national chip shortages and that we can balance economic opportunities with environmental sustainability.

Hope Knight of New York is President and CEO of Empire State Development.

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