WNY STAMP

Press release:

After announcing that a strategic partnership between Intel and IBM will bring hundreds of new semiconductor R&D jobs to New York’s Capital Region, U.S. Senate Majority Leader Charles E. Schumer followed up on his efforts to cement Upstate New York as the global hub of the semiconductor industry and pitched Intel’s recently appointed CEO Pat Gelsinger on how Intel should build on its new partnership with IBM and locate their next semiconductor fabrication (“fab”) plant in Upstate New York.

Last week, Intel shared its plans to select a second site for its next U.S. manufacturing facility within a year, following the announcement of the IBM R&D partnership.

Schumer said New York boasts several sites across Upstate ready to be home to Intel’s next Chip fab, or the supply chain Intel would require, from Alabama's STAMP campus in Western New York and the White Pines campus in Central New York, to Marcy Nanocenter in the Mohawk Valley and Luther Forest in the Capitol Region.

Plus, Upstate New York boasts a thriving semiconductor ecosystem as evidenced by the just announced IBM partnership, the state’s top notch universities and world-class workforce, and a diversity of companies across the supply chain. Typically, semiconductor fabs bring thousands of new jobs into a region, a number which Schumer said would be a win-win-win for the local economy, Upstate New York workforce, U.S. competitiveness, and Intel itself.

“Intel’s plans to invest in a second U.S. semiconductor fab offers a game-changing opportunity for Upstate New York and I made it clear to Intel all that New York has to offer to make their U.S. expansion a huge success for the company and the country,” Senator Schumer said.

“With an existing semiconductor ecosystem, including leading R&D companies, premier universities to train the next-generation workforce, a thriving supply chain, and robust utilities that can host advanced manufacturing, Upstate New York is tailor made to be the home of Intel’s new manufacturing facility.”

Schumer added, “An Intel fab in Upstate New York would not only help shore up our domestic production of chips, but it also positions the company to take even more advantage of its partnership with IBM to develop and lead in next generation semiconductor technology, a point I made to Intel’s CEO as they consider further building out their U.S. manufacturing operations in the year ahead.

"I stand ready to give my all out support in helping Intel harness all that the federal government has to offer to continue to lead the tech industry and position New York as a global hub of semiconductor manufacturing, including pushing to fully fund the federal incentives I created in last year’s defense bill so companies like Intel receive support to invest in U.S. competitiveness and create thousands of new jobs.”

Schumer has long emphasized the importance of active federal support for the semiconductor industry. This includes his push to include provisions in the FY2021 NDAA to create new federal semiconductor manufacturing, R&D, and training programs.

He notes that even though the United States revolutionized the semiconductor and broad microelectronics industries and invented nearly all of the key technology used to this day, by 2030, non-U.S. competitors are projected to control 83 percent of the global semiconductor manufacturing supply. And domestic production could be less than 10 percent, threatening U.S. reliance on foreign-made microelectronics, including from China, and posing huge risks to U.S. national and economic security.

In a meeting with then-nominee for Commerce Secretary, Gina Raimondo, Schumer raised the urgent need to fully fund and implement the new Commerce semiconductor manufacturing grant and R&D programs he passed into law as part of last year’s defense authorization. He pointed to this Intel investment as an example for why these federal incentives are such a high priority.

In February, Schumer announced that the Senate would work on a bill in the spring of this year that includes his bipartisan Endless Frontier Act, which would provide a major infusion of federal funds for federal R&D, including for semiconductors.

As part of this competitiveness package Schumer plans to bring to the Senate floor this spring, he will be pushing for emergency funding to implement the federal semiconductor programs created in last year’s defense bill so these critical programs can be implemented to help the U.S. successfully compete with other countries, including China, for new semiconductor manufacturing investment.

Schumer has led the effort to create these historic new federal investments in domestic semiconductor manufacturing and R&D. Last year, Schumer unveiled his bipartisan American Foundries Act to bolster U.S. leadership in semiconductor and broader microelectronics industries. He successfully added this bill as an amendment in July 20202 to the Senate’s Fiscal Year 2021 National Defense Authorization Act (NDAA).

The new programs included in NDAA will increase federal support for semiconductor manufacturing by providing new federal incentives to conduct advanced research and development of semiconductor technology, including the creation of the NSTC, secure the supply chain, and ensure national and economic security by reducing reliance on foreign semiconductor manufacturing.

Press release:

Plug Power Inc.’s development of North America’s largest green hydrogen production facility at the Western New York Science & Technology Advanced Manufacturing Park (STAMP) received final approval from the Genesee County Economic Development Center (GCEDC) Board of Directors at its March 25 meeting.

Plug Power Inc. plans to build the $232.7 million green energy technology facility at a 29.884-acre site at STAMP, with a proposed initial operation creating 68 new jobs at an average salary of approximately $70,000.

Plug Power Inc. also will invest $55 million to help build a 345/115KV electric substation in partnership with the New York Power Authority and National Grid. The substation will support future expansion and growth opportunities at STAMP’s 1,250-acre mega-site.

“The investments by Plug Power Inc. will advance our region’s expanding green hydrogen economy, create good jobs aligned with our county’s workforce training programs, and advance major infrastructure that is accessible to future projects,” said GCEDC President & CEO Steve Hyde.

“This project by Plug Power, along with the team effort by the GCEDC Board of Directors, the Empire State Development, the New York Power Authority, and National Grid, show our capacity to advance regionally significant projects at STAMP.”

Under the incentives application approved by the GCEDC Board, Plug Power Inc. will contribute approximately $2.3 million annually to support local municipalities and infrastructure development under a 20-year agreement.

In addition to Plug Power, the GCEDC Board also approved or accepted applications from five projects totaling another $420 million of capital investment in Genesee County.

The GCEDC Board approved final incentives for Forefront Power LLC (Elba Solar) for a $9.7 million community solar project on Norton Road in the Town of Elba. The project will generate 5MW of power and generate approximately $518,803 in new revenue to Genesee County, the Town of Elba, and the Elba Central School District over the proposed 15-year agreement.

The board also approved final incentives for Solar Liberty for community solar projects on Tesnow Road in the Town of Pembroke at a capital investment of $7.7 million. The projects will generate 4MW and 5MW of power and will generate approximately $856,024 in new revenue to Genesee County, the Town of Pembroke, and the Akron Central School District over the proposed 15-year agreement.

Finally, the GCEDC Board of Directors accepted initial applications for two other projects:

• Excelsior Energy LLC is proposing to invest $345.55 million in a utility-scale solar project on multiple properties in the Town of Byron. The project will generate 280 MW of power. Excelsior has negotiated a 20-year tax and community host agreements, including payments of $6,500 per MW, with a 2-percent annual escalator, to Genesee County, the Town of Byron, and the Byron-Bergen School District.
• DePaul Special Needs Apartments LP is proposing to invest $3.75 million to expand by 20 living units an existing special needs housing campus in the City of Batavia. The project would increase annual PILOT payments by approximately $6,000 per year for the remainder of the facility’s existing PILOT schedule.

UPDATE: We asked Jim Krencik, marketing director for GCEDC, to clarify the tax abatements for these projects. He provided the following. The "Property Tax Payments" followed by tax savings is the PILOT on the project (payments in lieu of taxes). The sales tax exemption is an exemption on sales tax for materials used in construction.

Plug Power

• Approved Property Tax Payments
  • $2.3 million / year
  • $46 million / 20 years
• Estimated Savings
  • $117.7 million property tax savings / 20 years if assessed at cost of construction ($232.7 million)
• Anticipated assessment is much more likely to be $60-90 million
  • ·        $2.3 million / year = 0 percent abatement on a $65 million assessment
• $1.1 million sales tax exemptions

Excelsior Solar

• Proposed Property Tax Payments
  • $1.8 million / year 1, increases by 2 percent annually
  • Based on $6,500 / megawatt
  • $44 million / 20 years
• Estimated Savings
  • $21.4 million property tax savings / 20 years
  • On solar panels only, land with panels on them are assessed separately
  • $11.2 million sales tax exemption

Photo: Work on a new high-capacity water line along Route 77 is part of a $2 million infrastructure construction project at STAMP.

Submitted photo and press release:

The Genesee County Economic Development Center (GCEDC) today announced that with the anticipated completion of a $2 million infrastructure project this summer, water capacity will increase to more than 1 million gallons per day at the 1,250-acre Western New York Science & Technology Advanced Manufacturing Park (STAMP) mega site in Genesee County.

“Every infrastructure milestone adds to the tremendous momentum behind STAMP. Our ability to deliver low-cost, 100-percent renewable power, and utility infrastructure aligned with project timelines and capacities, is driving even greater interest from site selectors and companies looking to locate in Genesee County,” said GCEDC President and CEO Steve Hyde.

Hyde noted that STAMP’s development is advancing with significant infrastructure design, engineering, and construction milestones. The mega-site is already designed and permitted for the construction of over 6 million square feet of advanced manufacturing facility space.

The water infrastructure project includes the installation of new high-capacity water lines that will connect with previously extended infrastructure on New York State Route 77 that runs along the STAMP site.

The water line project is supported by New York State, and is aligned with investments by Genesee County and the towns of Alabama and Pembroke to expand infrastructure for economic and community growth. Morsch Pipeline in Avon serves as the lead contractor on the project.

In February, Plug Power Inc. announced it plans to begin construction of North America’s largest green hydrogen production facility at STAMP. Plug Power’s $290 million proposed facility and electric substation investment further expands access to high-capacity, flexible infrastructure on parcels ranging from 30 acres to over 650 acres, Hyde said.

“Partnering with an industry leader like Plug Power is another significant asset available at STAMP to grow the renewable and advanced manufacturing sectors, which will transform our regional economy for generations,” Hyde said.

Press release:

The Genesee County Economic Development Center (GCEDC) Board of Directors accepted an initial application for incentives from Plug Power Inc. for a proposed $232.7 million green energy technology facility at Western New York Science & Technology Advanced Manufacturing Park (STAMP) at its March 4 board meeting.

The project, announced by Plug Power on Feb. 25, will produce green hydrogen using an electrolysis process of water utilizing renewable hydropower.

Under the terms of a proposed 20-year PILOT (Payment In Lieu Of Taxes) agreement, Plug Power would pay approximately $2.3 million annually to support local municipalities and infrastructure, including Genesee County, the Town of Alabama, and the Oakfield-Alabama Central School District.

Plug Power will also invest $55 million for the construction of a 345/115KV electric substation in partnership with the New York Power Authority and National Grid to support future expansion and growth opportunities at STAMP.

“Plug Power’s vision at STAMP includes over $100 million of investments into our municipal partners and site infrastructure," said Steve Hyde, GCEDC president and CEO. "These investments further enhance the strengths of our 1,250-acre mega site.

"At STAMP, projects can access low-cost power that is 100-percent renewable and reliable, at a site that is located, zoned and built for projects to succeed within their timelines.”

Plug Power would initially create approximately 68 new jobs at an average starting salary of approximately $70,000 plus benefits, totaling over $95 million in wages over 20 years. For every $1 of public benefit requested, more than $4.3 of planned investment and spending is estimated for the project, and totaling approximately $500 million over 20 years.

A public hearing will be scheduled on the proposed incentives.

The GCEDC Board of Directors also approved a purchase and sale agreement with Plug Power Inc. covering approximately 29.884 acres at STAMP for the proposed project.

In other actions:

The GCEDC board approved $906,000 of incentives to support LandPro Equipment LLC’s planned $9.2 million project to acquire and develop a 14-acre parcel to build a 50,000-square-foot facility for a full-service regional John Deere facility. The planned facility would primarily be used for operations and training, with a portion of the facility used for retail. The project proposes to create five new jobs and retain approximately 60 jobs in Genesee County.

The GCEDC board also accepted an initial application from Forefront Power LLC (Elba Solar) for a proposed $9.7 million community solar project. The project would generate 5 MW of power and is projected to generate approximately $518,803 in new revenue to Genesee County, the Town of Elba, and the Elba Central School District over a 15-year agreement.

The GCEDC board also accepted applications from Solar Liberty for two community solar projects with a capital investment of approximately $7.7 million in. The projects will generate 4 MW and 5 MW of power and are projected to generate approximately $856,024 in new revenue to Genesee County, the Town of Pembroke, and the Akron Central School District over a 15-year agreement.

Public hearings will be scheduled on the proposed incentives for each of the community solar projects.

Press release:

The Genesee County Economic Development Center (GCEDC) Board of Directors will consider accepting an initial application for incentives for Plug Power’s proposed $232.7 million green energy technology facility at Western New York Science & Technology Advanced Manufacturing Park (STAMP) at its March 4 board meeting.

The facility would produce green hydrogen through an electrolysis process of water utilizing clean hydropower. The production facility would produce approximately 45 metric tons of liquid hydrogen on a daily basis and sold to customers to replace fossil fuels in the transportation sector.

Construction is anticipated to begin this summer.

Plug Power would initially create approximately 68 new jobs at an average starting salary of approximately $70,000 plus benefits, totaling over $102 million over 20 years.

The company is requesting $118.2 million in sales and property tax exemptions from the GCEDC. For every $1 of public benefit requested, more than $4.3 of investment is proposed by the company or $520 million over 20 years.

Additionally, under the terms of a proposed 20-year PILOT agreement, Plug Power would pay approximately $2.3 million annually to support local municipalities and infrastructure, including Genesee County, the Town of Alabama, and the Oakfield-Alabama Central School District.

Plug Power will also invest $55 million for the construction of a  345/115KV electric substation in partnership with the New York Power Authority and National Grid to support future expansion and growth opportunities at STAMP.

Plug Power and New York Governor Andrew M. Cuomo announced the proposed project on Feb. 25, which is also being supported by the New York Power Authority and Empire State Development.

A public hearing on proposed incentives will be scheduled if the Board accepts the project application.

The construction of a hydrogen fuel production facility at WNY Science and Technology Advanced Manufacturing Park will have benefits for Genesee County that go far beyond the 68 jobs expected to go along with the $290 million project, said Steve Hyde, CEO of the Genesee County Economic Development Center, in an interview this afternoon.

Besides positioning STAMP to potentially be a big part of New York's green energy future, Plug Power has agreed to invest more than $55 million in a 450-megawatt electrical substation that other potential STAMP manufacturers can tap into.

"This is a big, huge investment," Hyde said. "This will more than double our investment into infrastructure in STAMP."

While some infrastructure is already in place much of the infrastructure construction for STAMP has been on hold until an advanced manufacturer agreed to locate a plant in the 1,250-acre mega site. Now the business development team at GCEDC will be able to tell site selectors that critical infrastructure, such as the substation, will be in place by a time-specific date.  That may help some site selectors who have been kicking the tires of STAMP -- including, according to news reports, Samsung -- make a final decision about their construction plans.

STAMP has been Hyde's dream project for more than a decade and throughout all these years he has cheerfully repeated, "economic development is a marathon and not a sprint." He used the phrase again today.

And he's not across the finish line yet. There is still a purchase agreement to complete and get approved by the GCEDC board with Power Plug as well as ironing out the final figures on an incentive package to help bring down development costs for the company. Typically these include a PILOT (payments made in lieu of taxes), and tax abatements on construction materials.

New York has already committed to providing $2 million in tax credits for job-creation its Excelsior program. These are incentives the company will not receive unless they meet job creation targets.

Plug Power will tap into clean hydroelectronic power from Niagara Falls to convert water into hydrogen and oxygen. The hydrogen will be liquified, stored in tanks, and transported to Henrietta where Power Plug is building a hydrogen fuel cell factory. 

Many of those fuel cells will be used in forklifts and other warehouse equipment used by companies like Walmart and Amazon, giving those companies a cost-effective and 100-percent carbon-free source of energy for a key part of its operations.

Hydrogen fuel cells will also be available for long-haul trucking as well as other applications.

"We're going to be part of a 100-percent green, renewable energy ecosystem," Hyde said.

He said that will help make STAMP attractive to other companies participating in New York's push to replace fossil fuels with renewable energy. 

That viewpoint mirrors the opportunity for STAMP to become an innovative hub for green energy with 1366 Technologies, which manufactures state-of-the-art solar wafer chips, announcing its intention to build a plant in STAMP in 2015. That proposal fell apart after years of delays because the Department of Energy would not sign off on a previously promised loan guarantee. Then Rep. Chris Collins apparently did nothing during that time to help push the project along with the DOE.

The DOE will not be as heavily involved in this project and Rep. Chris Jacobs seems to have no reservations about supporting the project. He issued this statement this evening:

“Landing Plug Power is an incredible win for Genesee County and the entire region. Thanks to the great work of the Genesee County Economic Development Center, the STAMP site is attracting high-tech, innovative businesses to bolster our region and provide high-paying jobs to Western New York. This is only the beginning, and I’ll do whatever I can to help bring more opportunities to our area.”

The Plug Power plant is expected to produce 45 tons of hydrogen fuel on a daily basis. 

The New York Power Authority is supporting the project with: 

• 10 MW allocation of low-cost hydropower from the Niagara Power Project;
• $1.5 million from the Western New York Power Proceeds program;
• 143 MW of High-Load Factor power that NYPA will procure for Plug Power on the energy market.

Power Plug is investing another $125 million in a facility in Henrietta to create fuel cells. The project is expected to create another 377 jobs for the region.

In a statement released yesterday, Plug Power CEO Andy Marsh said, "Plug Power's future rightfully revolves around building the green hydrogen economy. We are grateful our home state of New York supports aggressive climate and clean energy initiatives. And, that Plug Power's green hydrogen solutions can make such an impact on positive environmental and economic climates in the state."

Original reporting isn't free. You can help us do more of it by supporting The Batavian.

Press release:

After fighting for and securing Plug Power’s commitment to build their new "gigafactory" for hydrogen fuel cell manufacturing in Rochester last month, U.S. Senator Charles E. Schumer today called on the U.S. Department of Energy (DOE) to support the newly proposed plan by New York-based Plug Power to create the first U.S.-wide network of green hydrogen production facilities.

Plug Power plans on starting with the construction of a $290 million production facility at the Western New York STAMP (Science, Technology and Advanced Manufacturing Plant) site in Genesee County between Rochester and Buffalo. Schumer said DOE’s engagement will be a win-win in opening the door to additional federal resources to make Plug Power’s plans a reality while providing DOE with a first-ever national model for the creation of a domestic green hydrogen energy production supply chain.

Schumer said with DOE support, the new 60+ job green hydrogen production facility eyed at STAMP could help lead the nation in producing carbon-free green power to run hydrogen fuel-cell-powered vehicles and equipment all while creating new green jobs.

“My message to the DOE is that with its support, New York’s own Plug Power can lead the charge in dramatically shifting the nation towards clean energy starting with the construction of its first green hydrogen production facility at the STAMP campus in Western New York,” Senator Schumer said.

“The facility would create over 60 new good-paying green-energy jobs, boost the Western New York economy, and serve as a jumping-off point to create the nation’s first U.S.-wide network of green hydrogen production facilities to produce carbon-free fuel-cell power.

"With DOE support, this new green hydrogen fuel production facility in the heart of Western New York between Rochester and Buffalo can be a national model in efforts to achieve the Biden Administration’s drastically reducing greenhouse gas emissions and creating and 10 million clean energy jobs.”

In his letter to DOE today, Schumer invited DOE officials to join him in meeting with Plug Power to discuss how DOE support, technical assistance, and resources can help supercharge Plug Power to new heights by making its plans to build its hydrogen fuel production facility in Genesee County a reality.

Additionally, the senator explained that the expansion is part of Plug Power’s planned green hydrogen network to develop vertically integrated hydrogen infrastructure across the United States positioning the New York-based company to lead the charge in dramatically reducing the country’s greenhouse gas emissions.

Plug Power’s new production facility at STAMP would produce 40 tons-per-day of green hydrogen to supply fuel-cell-powered equipment and vehicles such as freight transportation and logistics handling equipment – some powered by fuel cells that will be manufactured at the upcoming Plug Power Gigafactory slated to open in Rochester this summer.

The facility would become the first nationally recognized green hydrogen production center and the first of its kind in the Northeast United States.

Plug Power, founded in 1997 and headquartered in Latham, NY, currently employs more than 400 workers in New York to innovate, manufacture and assemble hydrogen fuel cells including about 300 workers in the Capital Region at its headquarters and Capital Region manufacturing sites in Latham and Clifton Park, and about 70 workers at its Rochester manufacturing site.

In 2020, Schumer successfully fought for Plug Power to build their new "gigafactory" in Rochester, which will manufacture hydrogen electrolyzers, used for the production of hydrogen fuel, and hydrogen PEM fuel cells used to produce electricity to power equipment. Slated to open in the middle of next year, the "gigafactory" will add another 375 employees to Plug Power’s New York workforce.

Senator Schumer’s letter to the Department of Energy appears below:

Dear Acting Secretary,

I am writing to seek the Department of Energy’s (DOE) assistance in the newly proposed plan by New York-based Plug Power to create the nation’s first U.S.-wide network of green hydrogen production facilities, starting with the construction of a $264 million production facility at the Western New York STAMP site in Genesee County between Rochester and Buffalo. With a soon-to-be nearly 975 member New York workforce and a history of reliability and strong investment in the U.S. hydrogen economy, Plug Power is perfectly positioned to meaningfully contribute towards to Biden Administration’s goals of drastically reducing greenhouse gas emissions and creating 10 million clean energy jobs.   

Plug Power is striving to build five new green hydrogen fuel production facilities across the U.S., including a proposed $290 million production facility at the Western New York Science and Technology Advance Manufacturing Park (WNY STAMP) that will produce 40 tons-per-day of green hydrogen to supply the fuel-cells in advanced freight transportation vehicles and logistics handling equipment. Support and technical assistance from DOE now would create a win-win in both opening the door to additional federal resources to make Plug Power’s plans a reality while providing DOE with a first-ever national model for the creation of a domestic green hydrogen energy production supply chain. This new 60+ job green hydrogen production facility eyed at STAMP could help lead the nation in producing carbon-free green power to run hydrogen fuel-cell-powered vehicles and equipment all while creating new green jobs. 

Plug Power is focused on serving the zero-emissions material handling, transportation, and industrial sectors with low-cost green hydrogen fuel that is generated using 100% renewable, zero carbon energy. This project aims to strengthen our country’s economic, environmental, and national security by utilizing domestic energy resources, including low-cost renewable energy from solar photovoltaic, wind, and hydro-electric generation facilities to produce green hydrogen. It will decrease the need for energy imports while creating industry and employment growth opportunities across a variety of markets.

Plug Power, founded in 1997 and headquartered in Latham, NY, employs over 1,217 across the world, including over 600 employees in New York with another 375 expected to be added in the coming years at the company’s new gigafactory slated to open in Rochester, NY this summer. The company is focused on building the hydrogen economy as the leading provider of comprehensive hydrogen fuel cell turnkey solutions. Plug Power created the first commercially viable market for hydrogen fuel cell technology, deploying approximately 40,000 fuel cell systems, more than any other company in the world.

I would welcome the opportunity to host DOE officials for a meeting with Plug Power to discuss how DOE can provide technical assistance, support, and resource access to this cutting-edge company to help drive the construction of this new WNY green hydrogen production facility, a strong step towards a nationwide green hydrogen supply chain.

Thank you for your time and attention to this matter, please do not hesitate to reach out to my staff with any questions you may have.

Press release:

Yesterday, Senate Majority Leader Chuck Schumer discussed his push to direct Senate committees to craft legislation to protect American jobs and outcompete China. Below are Senator Schumer’s remarks, which can also be viewed here:

"Today on our caucus call, I directed the chairs and members of our relevant committees to start drafting a legislative package to outcompete China and create new American jobs.

"The legislation will have as its centerpiece a bicameral, bipartisan bill, the Endless Frontiers Act, which I introduced last year with (Sen.) Todd Young (R-IN), and Representatives Ro Khanna (D-CA), and Mike Gallagher (R-WI) in the House. And it will take the key cutting industries and make American investments so we will outcompete China in all of them.

"In addition, we will make serious investments in strengthening the U.S. semiconductor industry to outcompete China and stop depending on foreign sources.

"Right now, semiconductor manufacturing is a dangerous weak spot in our economy and in our national security. That has to change.

"You've all seen that auto plants throughout America are closed because they can't get the chips. We cannot rely on foreign processors for the chips. We cannot let China get ahead of us in chip production. This will be part of the proposal that we will introduce. 

"We will also talk about the build out of 5G and how America can remain number one there. And all of these have bipartisan support. The bill we will intend to introduce, and I talked to Senator Young about it, and he's eager to get it done, will be bipartisan.

"Our intention is to put this legislation on the Senate floor for a vote this spring.

"To get a little more specific, the new legislation must achieve three goals: enhance American competitiveness with China by investing in American innovation, American workers and American manufacturing; invest in strategic partners and alliances: NATO, Southeast Asia and India; and expose, curb, and end once and for all China's predatory practices which have hurt so many American jobs.

"We're looking at emergency funding to implement the bipartisan Semiconductor Program as part of this package. You all know about the chip shortage. I want this bill to address America's short term and long term plan to protect the semiconductor supply chain and to keep us number one in things like AI, 5G, quantum computing, biomedical research, storage. All of these things are part of the bill and the Endless Frontiers Act.

"So we need to get a bill like this to the president's desk quickly to protect America's long term economic and national security."

***************************************************************************

In Genesee County, the Science and Technology Advanced Manufacturing Park -- STAMP -- in Alabama is a semiconductor fabrication (“fab”) plant.

Previously: Schumer pitches top brass at Samsung on shovel-ready STAMP site for new semiconductor plant

At first glance, one might think that a major metropolitan area such as Austin, Texas, or Phoenix, Arizona, would have major advantages over the Western New York Science and Technology Advanced Manufacturing Park – better known as STAMP – when it comes to convincing an international corporation to build a semiconductor facility in the Town of Alabama.

But not so fast, says Steve Hyde, chief executive officer of the Genesee County Economic Development Center, who participated in a video interview with Howard Owens, publisher of The Batavian, earlier today.

Hyde, when given the opportunity to “sell the STAMP site,” didn’t hesitate -- coming up with several reasons why it would be beneficial for a company such as Samsung, for example, to build a $13 billion chip manufacturing plant at STAMP.

Recent published reports indicated that Samsung was considering STAMP – as well as the Austin and Phoenix areas – for a new semiconductor plant and that the Albany-based Plug Power was planning on operating a “green hydrogen” facility at the Genesee County park.

“STAMP can really compete and they (potential tenants) have got to take a serious look at us,” Hyde said. “That’s why we’re seeing opportunities in a big way right now in the marketplace.”

Hyde backed up that statement by pointing out that STAMP is located between two metropolitan areas (Buffalo and Rochester), has a growing and hungry workforce, and has access to low-cost green energy, and also the fact that New York does not impose “personal property taxes” on manufacturing equipment – a significant savings to these mega companies.

“There are very discreet advantages here in Western New York that you want to seize upon and emphasize,” Hyde said. “And they also need to consider that against some of the challenges in a market that has been a boomtown for 25 years (speaking of Austin) … that you have incredible competition for the workforce there right now.”

He noted that in Austin, the home of Tesla, Oracle, Texas Instruments and Samsung, big companies are competing for the same set of workers.

“Plus, the infrastructure there is overwhelmed and the congestion is crazy. So, there’s some challenges there relative to workforce,” he said. “When you look at us, we’re at a distance of a mile a minute you can literally travel on the highways. And there’s a well-qualified workforce from New York’s second- and third-largest metros. And for the pay rate at STAMP (estimated at $75,000 to $100,000 annually) … those workers will drive 30 to 45 minutes.”

Hyde also said another big advantage is that New York doesn’t charge “personal property taxes.”

“All of the manufacturing equipment in Texas is taxed as personal property taxes. So, when you really look closely at it, we’re going to be really aggressive on the incentive side with the state … and will be far less expensive than Austin because we don’t tax the equipment that will be two-thirds the cost of the project,” he explained.

He also pointed out that this area has good workforce solutions, noting that area colleges, including Genesee Community College, and Genesee Valley BOCES are building degree programs for high-tech industry.

“These big projects that we’re talking about, whether it’s a big renewable project or semiconductor, (they’re) huge power users,” Hyde said. “They want green power and we’ve got the New York Power Authority and we’ve got Niagara Falls less than 30 miles away. We have some of the lowest-cost green energy available in all of North America – like half of what it costs in Austin.

“So, you look at power, you look at operating costs, our labor is about 10 percent cheaper than Austin right now because the market has run up so much. Those factors are a huge part of the cost profile of running an operation like this.”

Hyde’s comments come in the face of a story in the Buffalo-based Investigative Post that indicates Samsung is leaning toward Austin as the site for the microchip factory that would employ about 1,800 people.

According to the Investigative Post report:

• Austin “appears to have a leg up, as it is already home to Samsung Austin Semiconductor, which has 2,500 employees;

• Samsung has purchased 250 acres of land next to its existing facility and has applied for zoning variances, and is seeking more than $1 billion in incentives to build there. It quoted Nate Jensen, a professor at the University of Texas-Austin, as saying Samsung’s odds of expanding there are “north of 90 percent.”

• Roger Kay, a market analyst with Boston-based Endpoint Technologies Associates, said that Austin has “the inside track” and suggested other sites, including STAMP, “are most likely involved to help the company drive up the value of incentives in Austin.”

Hyde remains optimistic, stating:

“We’ve been eating this elephant a bite at a time as capital becomes available. You know what, though, we’re finally just now arriving at the season where we built the initial pieces of the infrastructure for the site and we can accommodate smaller projects. But we’ve got all of the big infrastructure fully designed, fully permitted and fully ready to build … and now the big projects are inside that window.”

Interview with Steve Hyde, CEO of GCEDC. We'll talk about the state of economic development in Genesee County, touching on the ag park, Downtown Batavia, and STAMP. We're scheduled to start at 1 p.m.

Last week it was Samsung. Now, it’s Plug Power.

According to a story in today’s edition of The Buffalo News, the Albany-based Plug Power has disclosed plans to erect five “green hydrogen” plants in the United States, including a $264 million facility at the Western New York Science and Technology Advanced Manufacturing Park in the Town of Alabama.

The plant, which would produce green hydrogen for freight and materials handling equipment, is expected to be in operation by 2024, per the published report.

Previously, it was reported on The Batavian that Samsung is considering the placement of a $17 billion semiconductor plan at STAMP, a venture of the Genesee County Economic Development Center.

GCEDC President/CEO Steve Hyde, responding to an inquiry from The Batavian, issued the following statement, without specifically mentioning Plug Power:

“The Genesee County Economic Development Center recently reached out to our various public sector partners, including the Genesee County Legislature, the Town of Alabama among other local and state partners requesting that the GCEDC take on the role as lead agency for an environmental review of a potential project at STAMP.

“As a result, the GCEDC has completed extensive site readiness for the 1,250-acre STAMP site, including all site-level environmental, archeological, wetland delineation, and zoning requirements. This enables site selectors and prospective tenants to conduct effective due diligence as they evaluate projects at STAMP.

“We are very excited about this significant economic development opportunity for our community and look forward to working with our public sector partners during the due diligence by Project Gateway, as we have on dozens of other economic development projects in Genesee County over the last several years.”

Currently, there are no tenants at the 1,250-acre business park, although county officials have indicated that many companies are looking at the site.

Other highlights of The Buffalo News story:

• Plug Power would begin construction this March, with an expected completion in December 2022, creating 62 full-time jobs with an average salary of $75,000 plus benefits;

• An award of $1.5 million to support the venture has been recommended by the Western New York Power Proceeds Allocation Board;

• In its application, Plug Power said it uses a process called electrolysis … leading to “zero-emission freight transport and logistics handling equipment utilizing fuel-cells and clean energy manufactured in New York.” The company said it will be the first of its kind in the Northeast, and would lead to other businesses moving to STAMP.

• Plug Power will request $2 million from Empire State Development, and a package of sales and property tax abatements through the GCEDC.

Press release:

U.S. Senate Majority Leader Charles E. Schumer yesterday (Jan. 27) followed up on his efforts to secure a provision in the FY2021 National Defense Authorization Act to boost American-based semiconductor manufacturing by reaching out directly to Samsung, which is interested in possibly locating their new plant in Genesee County.

He called Senior Vice President of Samsung Device Solutions Joe Herr and other top brass about the Genesee Science and Technology Advanced Manufacturing Park -- STAMP -- in Alabama and expressed his strong support for the project coming to Western New York.

Samsung is currently considering the STAMP campus, as well as several other locations in other states, for its semiconductor fabrication (“fab”) plant – with 1,900 jobs – that the company plans to open late next year. Samsung’s Device Solutions division includes Samsung’s Global Semiconductor Foundry business. 

“This Samsung project is an exciting and a potential game changer for the region," Schumer said. "I made it clear to Samsung that I strongly support locating their planned 1,900 worker state-of-the-art semiconductor chip fab at the shovel-ready STAMP site in Genesee County. I know firsthand that STAMP is shovel-ready – and that, combined with Upstate New York’s robust semiconductor industry, make Genesee the perfect location for Samsung’s new chip fab.

World-class WNY Workforce

"Our world-class Western New York workforce combined with New York’s considerable experience in semiconductor manufacturing and R&D means STAMP is tailor-made to be the home for Samsung’s new facility. I stand ready to help Samsung harness all that the federal government has to offer to continue to lead the tech industry and position New York as a global hub of semiconductor manufacturing.

“When I stood at STAMP in August to announce my proposal to create the first-ever new federal semiconductor manufacturing and R&D incentives program, I said it could put sites like Western New York’s STAMP in contention for landing a new semiconductor manufacturing plant and the thousands of new jobs that come with it.

"This game-changer proposal passed into law last month and already companies like Samsung are considering STAMP for a 1,900 job chip fab plant, partly because of this new federal initiative. Now, I will work to secure this federal investment and offer my all-out support and advocacy in helping STAMP compete for this multi-billion-dollar plant.” 

Schumer has long championed the Genesee site and toured STAMP in August, and knows firsthand how ideal the campus would be as home for Samsung’s new chip fab. Schumer explained to Samsung that he, alongside the Genesee County Economic Development Center (GCECC), New York State, and Western New York officials, worked for a decade to help ensure that it was shovel-ready for a semiconductor facility.

WNY Offers: Low Utility Costs, Transportation Networks, Supplies Access, Brain Power

“The STAMP campus, sitting on 1,250 acres of land between Buffalo and Rochester, New York’s second and third largest metros, respectively, with a 1.2 million person world-class workforce, is specifically designed for large-scale fabs and provides maximum flexibility in layout and infrastructure connections,” Schumer said.

"Additionally, the senator pointed out many cost and infrastructure advantages to the STAMP campus location, including low utility costs, access to existing transportation networks, access to New York state’s existing chip fab supply chain ecosystem, and 62 colleges, universities, and community colleges within a two-hour drive of the site including Cornell University, University at Buffalo, Rochester Institute of Technology, University of Rochester, Genesee Community College.

Schumer said Samsung is relying on his legislation to building new fabs like this one in the United States. In fact, Schumer pointed out, the United States has gone from producing 24 percent of the world’s semiconductors in 2000, to just 12 percent while China, by comparison, has gone from producing zero chips to 16 percent of the world’s supply because the United States is not matching the investments that other competing nations are making in order to land new job-creating semiconductor chip fabs.

The senator's first-ever legislation will reverse this imbalance and level the playing field for companies like Samsung to build new chip fabs in the United States. For the first-time Schumer’s legislation will provide federal incentives to semiconductor chip fabs to build in the United States.

U.S. Reliance on Foreign-made Microelectronics Could Pose 'Huge Risks'

Upon passage of his legislation last month in the FY2021 National Defense Authorization Act Schumer said his legislation is vital. He noted that even though the United States revolutionized the microelectronic industry and invented nearly all of the key technology used to this day, by 2030, non-U.S. competitors are projected to control 83 percent of the global semiconductor manufacturing supply while domestic production could be less than 10 percent, threatening U.S. reliance on foreign-made microelectronics, which could pose huge risks to U.S. national and economic security.

In a recent meeting with the Commerce Secretary nominee, Governor Gina Raimondo, Schumer raised the urgent need to fully fund and implement the new Commerce semiconductor manufacturing grant program he passed into law as part of last year’s defense authorization, pointing to this Samsung investment as an example for why these federal incentives are such a high priority. Federal incentives are critical to the United States successfully competing with other countries, including China, for new semiconductor manufacturing investment like the proposed Samsung facility.

Schumer, in addition to paving the way for future federal incentives for investment into domestic semiconductor manufacturing previously brought STAMP to the attention of the Department of Defense, urging the agency to work with the semiconductor industry to expand the domestic supply of chips and other microelectronics.

STAMP is Made Specifically for What Samsung Needs

STAMP is specifically designed for development of large-scale semiconductor manufacturing. The 1,250 acre mega site can accommodate large advanced manufacturing operations with its expansive space for several plants.

Schumer has also previously lobbied the Board of Directors of the Semiconductor Industry Association (SIA) to put STAMP on their map and pitched SIA’s 18 semiconductor industry CEOs to look to expand their operations in Upstate New York at sites like STAMP in Genesee County.

In 2017 Schumer helped secure Federal Energy Regulatory Commission (FERC) approval of Empire Pipeline Inc.’s revised and extended PILOT agreement with Genesee County, the proceeds of which were needed to finance new water infrastructure at STAMP.

In 2016 Schumer began assisting STAMP secure necessary U.S. Fish and Wildlife right-of-way permits to construct new infrastructure hook-ups to STAMP. In 2012, Schumer successfully advocated on behalf of STAMP by calling on the U.S. Army Corps of Engineers to provide necessary wetlands permit assurances so that STAMP's developers could proceed with developing the site.

South Korean technology company Samsung is reportedly eyeing WNY STAMP, along with two locations in Texas, for the construction of a $13 billion chip manufacturing plant.

Citing The Wall Street Journal (paywall), The Hill reports, Samsung aims to become the leader in the $400 billion industry and needs a plant in the Uniited States to make that happen.

Sen. Charles Schumer was in Alabama in August to discuss a congressional push to increase semiconductor manufacturing in the United States as a matter of national defense. The National Defense Authorization Act has not yet been funded.

The Hill reports that Samsung is looking to negotiate with federal officials for financial incentives to build the plant in the United States because it would be cheaper to develop its product in other parts of the world. 

Reportedly, Samsung’s goal is to have a chip-making plant operational by October 2022 and to employ 1,900 people.

The total annual tax revenue from all current Genesee County Economic Development Center-backed projects -- more than 160 since 2006 -- will generate more than $8.4 million in additional property tax revenue for local governments once all the projects have matured out of their PILOT phase.

There are more than 90 projects that received a PILOT (Payment In Lieu Of Taxes) that are now completely on the tax rolls.

A PILOT waives property taxes on the increase in assessed value associated with a building expansion or new construction but requires the property owner to make payments to the local taxing jurisdictions. 

The 71 projects currently with an active PILOT generated $1.5 million in revenue for local governments, such as municipalities, the county, and school districts, in 2019.

The projects with completed PILOTs generated another $3.5 million in revenue for local governments -- revenue that would not have been realized if the property owner had not expanded or started a new project causing an increase in the assessed value of the property.

Steve Hyde, CEO of GCEDC, Jim Krencik, marketing director, and Lezlie Farrell, CFO, shared data on GCEDC's progress during an annual review presentation for the county's Ways and Means Committee on Wednesday.

Hyde and Mark Masse, vice president of operations, both said Genesee County is well-positioned to take advantage of the new thinking among manufacturers in the post-pandemic world, when many companies realize they need to tighten up their supply chains and "reshore" (bring factories back to the United States) their operations. They're looking for shovel-ready sites, and there is ample such acreage in the GCEDC-created industrial parks around the county.

"Companies are taking a serious, hard look at where there are failings in the current system, from raw materials up through shipping," Masse said.

On a recent statewide conference call with three of the nation's top site selectors, one of them, whom Hyde described as the dean of site selectors, praised Genesee County.

"We've been working on getting on his radar for 10 years," Hyde said. "When you start to get on their radar, you've got a shot."

As for STAMP -- the industrial park in Alabama being marketed to tech manufacturers -- there are five companies currently considering siting a new facility there, including a semiconductor company that Hyde indicated Sen. Charles Schumer helped swing Genesee County's way.

These are long-term projects so Hyde said it will be a while before any of these potential suitors sign a deal.

The biggest obstacle to industrial growth in Genesee County is the lack of quality housing stock. That makes it harder to attract companies who want to ensure employees who move here can find quality housing or it means well-compensated employees move to Rochester or Buffalo.

Hyde noted that the average age of a house in Batavia is 73 years, twice the national average.

Press release:

Construction work has commenced to finish a major water line project to the Western New York Science & Technology Advanced Manufacturing Park (STAMP) and bring the STAMP South Campus to 100-percent shovel-readiness for development.

The Genesee County Economic Development Center (GCEDC) announced today (Aug. 18) that the $2 million active infrastructure project enables over one million gallons per day of water capacity to STAMP. This project is supported by Genesee County to support Phase I development of the STAMP site.

The 1,250-acre STAMP site, through the 850-acre STAMP North Campus and the 400-acre STAMP South Campus, is designed and permitted for more than six million square feet of new construction supported by low-cost hydropower.

“There is a tremendous amount of momentum for STAMP right now and not just from an infrastructure investment and construction standpoint, but in interest among site selectors and representatives from advanced manufacturing companies, including semiconductor companies from across the world,” said Steve Hyde, president and CEO, GCEDC. 

The start of the construction on the latest STAMP water line comes after U.S. Senator Charles Schumer was in Batavia on July 31^st to announce among other things, his support for a $1 million grant through the Northern Border Regional Commission for the construction of a new force main to serve the entire STAMP site. 

STAMP infrastructure design, engineering and construction launched in 2014 with the allocation of $33 million by New York State.

“With federal, state and local funding enabling STAMP’s infrastructure delivery, our 1,250-acre mega site will provide a significant return on investment and can be a model for economic recovery as New York State emerges from the pandemic,” Hyde said.

The infrastructure work includes the completion of the construction of a water line that was started from a connection from the Erie County Water Authority in Pembroke near the New York State Thruway. The second leg included construction of the line at a connection near the Western New York National Cemetery for veterans, and now from the cemetery to the STAMP South Campus.  

The work is anticipated being completed by the end this year. The design and engineering work was performed by Clark Patterson & Lee.

In the video, Sen. Charles Schumer talks about the semiconductor plan, baseball, baseball trivia, his relationship with newly elected Rep. Chris Jacobs, the safety of reopening schools, and the future of the Muckdogs.

Press release:

Standing with local officials at Genesee’s STAMP* Campus, U.S. Senator Charles E. Schumer today unveiled his three-pronged push to jolt the U.S. semiconductor industry and the Upstate New York economy into high gear.

First, Schumer called for swift passage by Congress of the final Fiscal Year 2021 National Defense Authorization Act (NDAA), in which the senator successfully included an amendment that will continue U.S. leadership in semiconductor manufacturing and revitalize innovation in the global microelectronics sector.

Second, the Senator announced his push for a $1M Northern Border Regional Commission grant that STAMP needs to construct a new sewer line to complete STAMP’s wastewater system infrastructure. The sewer is the final piece of infrastructure that will make the 1,250-acre STAMP campus shovel-ready for manufacturing facility construction.

Third, Schumer will urge the Department of Defense (DoD) to consider the STAMP campus as the agency looks to partner with industry to develop new domestic semiconductor fabs. Combined, the Senator’s efforts will provide unprecedented support for the U.S. semiconductor industry and create opportunities to bring hundreds of jobs to Genesee County and Upstate New York.

“The economic and national security risks posed by relying too heavily on foreign semiconductor suppliers cannot be ignored, and Upstate New York, especially the STAMP Campus here in Genesee, is the perfect place to grow this industry by leaps and bounds,” Senator Schumer said.

“We must continue to invest in our domestic semiconductor industry in order to keep good-paying, high-tech American manufacturing jobs here in Upstate New York. We need to ensure our domestic microelectronics industry can safely and securely supply our military, intelligence agencies, and other government needs. This is essential to American jobs, our national security, and to U.S. leadership in this critical industry."

Schumer noted that even though the United States revolutionized the microelectronic industry and invented nearly all of the key technology used to this day, competitors in Asia, especially China, have made huge investments into their microelectronics industries in recent years to challenge and undercut U.S. leadership.

In fact, Schumer pointed out, the United States has gone from producing 24 percent of the world’s semiconductors in 2000, to just 12 percent more recently. In contrast, China has gone from producing zero chips to 16 percent of the world’s supply in the same time frame. The senator warned that by 2030, Asia is projected to control 83 percent of the global semiconductor manufacturing supply while domestic production could be less than 10 percent, threatening U.S. reliance on foreign-made microelectronics, which could pose huge risks to U.S. national and economic security.

Therefore, Schumer argued, his three-pronged plan to revitalize the semiconductor industry and incentivize it to build new research and manufacturing facilities in the United States at sites like STAMP is vital to cement global U.S. leadership in the microelectronics industry and will ease U.S. reliance on foreign-made semiconductors, alleviating economic and national security risks.

“Senator Schumer’s leadership in the Senate’s passage of the American Foundries Act as a part of the National Defense Administrative Act will help put STAMP over the finish line as it will make available necessary funding to develop and construct the final pieces of infrastructure to stand up multiple semiconductor manufacturing fabs and along with it the creation of thousands of good-paying, family-sustaining jobs to Genesee County and the Western New York and Finger Lakes regions,” said GCEDC President and CEO Steve Hyde. Attracting semiconductor and similar industries at STAMP will result in as much as $10 billion to $15 billion of private sector investment all of which will be enabled by this game-changing legislation.”

Secondly today, Schumer announced his push to secure the Northern Border Regional Commission (NBRC) grant to construct the last missing sewer line needed for STAMP to achieve shovel-ready status. Specifically, this funding is needed to complete STAMP’s sewer and wastewater system by constructing a 14,500-square-foot force main sewer line to support new businesses that locate at STAMP. The force main is the final piece needed to make STAMP shovel-ready with the capabilities to meet any industry’s needs to construct new manufacturing operations at STAMP and create new high-quality jobs. 

Lastly, Schumer called on the Department of Defense (DoD) to consider STAMP as a location for next-generation semiconductor research and manufacturing facilities now that the DoD is in discussions with semiconductor manufactures to build new domestic chip manufacturing facilities to ensure U.S. leadership in the global microelectronics supply chain.

Last month Schumer wrote to Defense Secretary Mark Esper to draw his attention to the opportunities for new Semiconductor development at STAMP. As a result, DoD officials participated in a meeting Schumer convened with STAMP officials to help position STAMP to capitalize on new opportunities through the DoD to attract semiconductor research and manufacturing facilities to STAMP.

Following Schumer’s unveiling of his bipartisan American Foundries Act and major push to bolster U.S. leadership in the microelectronics sector, he successfully advanced his proposal as an amendment included in the Senate-passed Fiscal Year 2021 National Defense Authorization Act (NDAA). The amendment:

• Directs the Secretary of Commerce to create a grant program for constructing, expanding, or modernizing commercial semiconductor fabrication, assembly, testing, packaging, and advanced R&D facilities in the United States.
• Directs the Secretary of Defense to create a partnership program with the private sector to encourage the development of advanced, measurably secure microelectronics for use by the Department of Defense, Intelligence Community, critical infrastructure, and other national-security applications.
• Requires the Secretary of Commerce to commence a review within 120 days assessing the state of the U.S. semiconductor industrial base.
• Establishes a Multilateral Microelectronics Security Fund, with which the United States, its allies, and partners will work to reach agreements promoting consistency in their policies related to microelectronics, greater transparency including supply chains, and greater alignment in export control and foreign direct investment policies.
• Directs the President to establish a subcommittee on semiconductor technology and innovation within the National Science and Technology Council; directs the Secretary of Commerce to establish a national semiconductor technology center to conduct research, fund semiconductor startups and a Manufacturing USA Institute, create a National Advance Packaging Manufacturing Program; and encourages the Secretary of Labor to work with the private sector on workforce training and apprenticeships in semiconductor manufacturing.

This amendment, which is also cosponsored by U.S. Senator Kirsten Gillibrand, is based on the Senator’s bipartisan American Foundries Act, which has been broadly supported by key players in New York’s semiconductor industry, including GlobalFoundries, IBM, ON Semiconductor, Cree Inc., the Genesee County Economic Development Center, Hudson Valley Economic Development Corporation, Mohawk Valley EDGE, Cornell University, Binghamton University, and SUNY Polytechnic Institute.

 STAMP is specifically designed for development of large-scale semiconductor manufacturing. The 1250-acre mega site is divided into an 850-acre North Campus that can accommodate clean tech advanced manufacturers including up to three semiconductor chip fabs and a 400-acre South Campus ideal to attract new food, beverage, and warehouse/distribution development.

In 2012, Schumer successfully advocated on behalf of STAMP by calling on the U.S. Army Corps of Engineers to provide necessary wetlands permit assurances so that STAMP's developers could proceed with developing the site. In 2017 Schumer helped secure Federal Energy Regulatory Commission (FERC) approval of Empire Pipeline Inc.’s revised and extended PILOT agreement with Genesee County, the proceeds of which were needed to finance new water infrastructure at STAMP.

*STAMP -- Science and Technology Advanced Manufacturing Park

Press release:

Following Senator Charles E. Schumer’s unveiling of his bipartisan American Foundries Act and major push to bolster U.S. leadership in the microelectronics sector, Schumer and U.S. Senator Kirsten Gillibrand today announced the Fiscal Year 2021 National Defense Authorization Act (NDAA) includes their provision to reestablish U.S. leadership and revitalize innovation in the global microelectronics sector.

The senators explained that the bipartisan legislation increase federal investment into semiconductor manufacturing by providing new federal incentives to conduct advanced research and development of semiconductor technology, secure the supply chain, and ensure national and economic security by reducing reliance on foreign semiconductor manufacturing.

The amendment passed in the Senate 96-4 yesterday, and the legislation included in the final NDAA, which is expected to be put to a final vote in the Senate in coming days, will provide unprecedented support for the U.S. semiconductor industry.

“The economic and national security risks posed by relying too heavily on foreign semiconductor suppliers cannot be ignored, and Upstate New York, which has a robust semiconductor sector, is the perfect place to grow this industry by leaps and bounds,” Senator Schumer said.

“America must continue to invest in our domestic semiconductor industry in order to keep good-paying, high-tech American manufacturing jobs here in Upstate New York. We need to ensure our domestic microelectronics industry can safely and securely supply our military, intelligence agencies, and other government needs.

"This is essential to our national security and to U.S. leadership in this critical industry. I’m pleased to deliver this win in this year’s final NDAA for Upstate New York and the entire country."

“Our nation is in an economic crisis. Investing in microelectronics manufacturing and the semiconductor industry will create high paying manufacturing jobs for hard working Americans at a time when our country needs it most,” Senator Gillibrand said.

“This amendment will help expand our advanced manufacturing workforce in Upstate New York and invest in cutting edge research and development. I’m proud that this legislation is included in NDAA so that we can continue to strengthen our microelectronic domestic supply chain, prioritize American-owned businesses over foreign production, and keep our country safe.”  

The senators noted that even though the United States revolutionized the microelectronic industry and invented nearly all of the key technology used to this day, competitors in Asia, especially China, have made huge investments into their microelectronics industries in recent years to challenge and undercut U.S. leadership.

In fact, Schumer and Gillibrand pointed out, the United States has gone from producing 24 percent of the world’s semiconductors in 2000, to just 12 percent more recently. In contrast, China has gone from producing zero chips to 16 percent of the world’s supply in the same time frame.

The senators warned that by 2030, Asia is projected to control 83 percent of the global semiconductor manufacturing supply while domestic production could be less than 10 percent, threatening U.S. reliance on foreign-made microelectronics, which could pose huge risks to U.S. national and economic security.

Schumer has long-championed increased efforts to expand the domestic microelectronics industry, supporting companies like GlobalFoundries, which houses their most advanced "Fab 8" manufacturing facility in Malta, New York, IBM, and others.

With New York home to multiple major companies and research institutions in the semiconductor industry, the state is positioned to securely supply the U.S. government with critical technologies and maintain U.S. leadership in this technology. This is a tremendous opportunity for New York’s semiconductor companies to expand operations, create more jobs in Upstate New York, and help the U.S. reduce its reliance on foreign semiconductor manufacturing.

Specifically, supporters of the amendment include: GlobalFoundries; IBM; ON Semiconductor; Cree Inc.; the Genesee County Economic Development Center; Hudson Valley Economic Development Corporation; Mohawk Valley EDGE; Cornell University; Binghamton University; and SUNY Polytechnic Institute.

“Senator Schumer has been a longtime champion of New York's 1,250-acre STAMP megasite in Genesee County and this legislation provides a tremendous opportunity to create thousands of high-quality semiconductor jobs for the Western New York and Finger Lakes regions," said Steve Hyde, president and CEO of the Genesee County Economic Development Center (GCEDC). "In short, STAMP* is a transformative economic development game-changer that will generate billions of dollars of economic activity across Upstate New York.

"We appreciate Senators Schumer and Gillibrand’s push to pass this milestone legislation that advances our site, region, and New York's readiness as we compete globally for projects of this scale.” 

*STAMP: Western New York Science and Technology Advanced Manufacturing Park in Alabama.

Details on the NDAA Amendment are below:

• Directs the Secretary of Commerce to create a grant program for constructing, expanding, or modernizing commercial semiconductor fabrication, assembly, testing, packaging, and advanced R&D facilities in the United States.
• Directs the Secretary of Defense to create a partnership program with the private sector to encourage the development of advanced, measurably secure microelectronics for use by the Department of Defense, Intelligence Community, critical infrastructure, and other national-security applications.
• Requires the Secretary of Commerce to commence a review within 120 days assessing the state of the U.S. semiconductor industrial base.
• Establishes a Multilateral Microelectronics Security Fund, with which the United States, its allies and partners will work to reach agreements promoting consistency in their policies related to microelectronics, greater transparency including supply chains, and greater alignment in export control and foreign direct investment policies.
• Directs the president to establish a subcommittee on semiconductor technology and innovation within the National Science and Technology Council, directs the Secretary of Commerce to establish a national semiconductor technology center to conduct research, fund semiconductor startups and a Manufacturing USA Institute, create a National Advance Packaging Manufacturing Program, and encourage the Secretary of Labor to work with the private sector on workforce training and apprenticeships in semiconductor manufacturing.

Press release:

Citing concerns that China is catching up to the United States in microelectronics production capacity, U.S. Senator Charles E. Schumer today (June 28) unveiled the American Foundries Act, a bipartisan initiative that seeks to reestablish U.S. leadership and revitalize innovation in the global microelectronics sector.

Schumer explained that the bipartisan legislation would make critical investments in domestic commercial and defense-related microelectronics manufacturing and research and development, and address economic and national security concerns by decreasing U.S. dependence on foreign-made semiconductor chips.

“The economic and national security risks posed by relying too heavily on foreign semiconductor suppliers cannot be ignored, and Upstate New York, which has a robust semiconductor sector, is the perfect place to grow this industry by leaps and bounds,” Senator Schumer said. “America must continue to invest in our domestic semiconductor industry, including companies like GlobalFoundries, ON Semiconductor, IBM and Cree right here in New York, in order to keep good-paying, high-tech American manufacturing jobs here at home.

"We need to ensure our domestic microelectronics industry can safely and securely supply our military, intelligence agencies, and other government needs. This is essential to our national security and to U.S. leadership in this critical industry."

The senator noted that even though the United States revolutionized the microelectronic industry and invented much of the key technology used to this day, competitors in Asia, especially China, have made huge investments into their microelectronics industries in recent years to challenge U.S. leadership. In fact, Schumer pointed out, 78 percent of cutting-edge wafer fabrication capacity is now based in Asia, with last year being the first year that North America fell behind China.

Schumer has long-championed increased efforts to expand the domestic microelectronics industry, supporting companies like GlobalFoundries, which houses their most advanced "Fab 8" manufacturing facility in Malta, New York, IBM, and others.

With New York home to multiple major companies and research institutions in the semiconductor industry, the state is positioned to securely supply the U.S. government with critical technologies and maintain U.S. leadership in this technology, offering a tremendous opportunity for New York’s semiconductor companies to expand operations, create more jobs in Upstate New York, and help the United States reduce its reliance on foreign semiconductor manufacturing.

Specifically, supporters of the American Frontiers Act include GlobalFoundries, IBM, ON Semiconductor, Cree Inc., the Genesee County Economic Development Center, Hudson Valley Economic Development Corporation, Mohawk Valley EDGE, Cornell University, Binghamton University, and SUNY Polytechnic Institute.

"We applaud the powerful American Foundries Act of 2020 co-sponsored by Senator Schumer and the impressive, bipartisan list of Senate leaders,” said Tom Caulfield, CEO of GlobalFoundries. “Senator Schumer has supported semiconductor manufacturing and GlobalFoundries for many years and this legislation seeks the quickest route to boosting chip production in the U.S. We appreciate this timely and significant contribution as Congress and the Administration work through the best approach for federal investment to restore domestic leadership in semiconductor manufacturing.”

"The U.S. semiconductor industry drives economic growth through technological breakthroughs and plays a critical role in the nation’s security,” said John E. Kelly III, Executive Vice President, IBM. “IBM strongly supports the American Foundries Act of 2020 because this important legislation would sustain American leadership in semiconductor technology and establish a national strategy to move it forward. We thank Senators Schumer and Cotton for their leadership on this bill and urge the Senate to pass it quickly."

“The American Foundries Act is a bold step to respond to the aggressive incentives available to overseas competitors and reverse the decline of semiconductor manufacturing in the United States,” said Keith Jackson, president and CEO of ON Semiconductor. “ON Semiconductor urges the Congress to quickly advance legislation to promote American semiconductor research and manufacturing.”

“Cree continues to invest aggressively in silicon carbide manufacturing and research in order to support the growing, global demand for our technologies, and we believe advanced semiconductor manufacturing is essential to leading the acceleration of critical next-generation technologies," said Gregg Lowe, president and CEO of Cree Inc. "Like many other semiconductor companies in the U.S., we believe this legislation would provide necessary investments that move our industry and economy forward and we commend its introduction."

"Senator Schumer has long recognized that our 1250-acre STAMP site in Genesee County presents a tremendous opportunity to create thousands of high quality semiconductor jobs for the Western New York and Finger Lakes regions," said Steve Hyde, president and CEO of the Genesee County Economic Development Center (GCEDC).

"Our challenge has always been the considerable cost to get the site developed and shovel ready in the global competition to land projects of this scale. This legislation though is a game changer in so many ways as it will support cutting-edge domestic semiconductor development and increases in semiconductor manufacturing capacity at a crucial time in our nation's history."

“Senator Schumer’s American Foundries Act is the type of innovative, bipartisan legislation that we need to build on our regional strengths and grow the Hudson Valley economy post-pandemic," said Mike Oates, president and CEO of Hudson Valley Economic Development Corporation. "With industry leaders like IBM, GlobalFoundaries, and soon ON Semiconductor right here in the Hudson Valley, it is no secret that investing in the microelectronics manufacturing and research and development space will enhance our ability to manufacture semiconductor chips, create jobs, and reimage our economy.

"HVEDC is proud to support Senator Schumer in his push to bolster our footprint in the growing semiconductor sector and we will continue working with him to keep the Hudson Valley on the map as a global industry leader.”

“Construction of new microelectronics and semiconductor fabrication facilities have the ability to change the economic landscape of a region and the proposed American Foundries Act proposed by Senator Schumer is a strategic investment to secure the United States’ position as a global  leader in microelectronics and semiconductor R&D,” said Steven J. DiMeo, president, Mohawk Valley EDGE.

“As our economy shifts away from the long-standing model of industrialism coupled with the uncertainty of a global pandemic, we now more than ever need the federal government to continue its support of game-changing industries like semiconductors and microelectronics. The construction of Cree’s state-of-the-art 200 mm enabled SiC semiconductor facility at the Marcy Nanocenter in Upstate NY, is a pivotal example of what can be done when all stakeholders are working together to advance our high-tech ecosystem and regional economy and maintain the United States’ global competitiveness.”

Emmanuel P. Gianellis, vice provost for Research and Vice President for Technology Transfer, Intellectual Property and Research Policy at Cornell University, said, “Senator Schumer has long recognized that the best way to keep America at the forefront of the technology revolution is to invest in research and development here at home.

"Not only does the American Foundries Act of 2020 direct critical resources into expanding the domestic production of microelectronics, it also points the way to the future with substantial funding for research and innovation. Cornell University is pleased to support this legislation and commends Senator Schumer for his leadership.”

"Whether we are talking about technology that enables advancement in AI for autonomous vehicles, smart energy for a greener environment or flexible wearable devices for human health and industrial monitoring, the United States government must remain on the frontlines, supporting industrial and academic innovations in advanced electronics manufacturing," said Harvey Stenger, president of Binghamton University.

"We once again acknowledge all that Sen. Schumer has done and continues to do to emphasize the importance of research and development efforts in private labs as well as at research institutions like Binghamton University. We thank the senator for this latest effort to apply resources to enhance the bridge from early R&D to at-scale manufacturing that will lead to breakthroughs in next-generation semi-conductor research and keep the United States competitive and a leader in the global economy."

“Leadership in the microelectronics industry is critical for America’s continued economic and strategic competitiveness on the global stage," said SUNY Polytechnic Institute Interim President Grace Wang, Ph.D. "The American Foundries Act of 2020 will provide a more strategic national approach in advancing  microelectronics capabilities, R&D, and workforce development and ensure our nation remains at the forefront of impactful innovation.

"This bill takes a bold approach to facilitate chip fab modernization efforts and investment in key areas such as fabrication, assembly, test, and advanced packaging to strengthen our nation’s technological independence and agility for years to come.”

Schumer said he will aim to include the legislation as an amendment in this year’s National Defense Authorization Act (NDAA).

Senator Schumer introduced the American Foundries Act of 2020 in the Senate, along with Senators Cotton (R-Arkansas), Reed (D-Rhode Island), Hawley (R-Missouri), Gillibrand (D-New York), Risch (R-Idaho), Jones (D-Alabama), Collins (R-Maine), King (I-Maine), and Rubio (R-Florida), and details of the bill can be found below:

Support for Commercial Microelectronics Projects: Authorizes the Department of Commerce to award $15 billion in grants to states to assist in the construction, expansion, or modernization of microelectronics fabrication, assembly, test, advanced packaging, or advanced research and development facilities.

Support for Secure Microelectronics Projects: Authorizes the Department of Defense to award $5 billion in grants for the creation, expansion, or modernization of one or more commercially competitive and sustainable microelectronics manufacturing or advanced research and development facilities capable of producing measurably secure and specialized microelectronic for defense and intelligence purposes. This funding may go to primarily commercial facilities capable of producing secure microelectronics.

R&D Funding: Authorizes $5 billion in R&D spending to secure U.S. leadership in microelectronics. Requires agencies that receive this funding to develop policies to require domestic production, to the extent possible, for any intellectual property resulting from microelectronics research and development as a result of these funds.

The new R&D funding would be broken up as follows:

• $2 billion for DARPA’s Electronics Resurgence Initiative
• $1.5 billion for the National Science Foundation
• $1.25 billion for the Department of Energy
• $250 million for the National Institute of Standards and Technology

National Microelectronics Research Plan: Establishes a subcommittee of the President’s Council on Science and Technology to produce a report each year to guide and coordinate funding for breakthroughs in next-generation microelectronics research and technology, strengthen the domestic microelectronics workforce, and encourage collaboration between government, industry, and academia.

Safeguards: Prohibits firms owned, controlled or otherwise influence by the Chinese government from accessing funds provided by the legislation.

The Genesee County Planning Board on Thursday night recommended approval of a zoning text amendment to allow mixed-use buildings in the Town of Pembroke Interchange District, but not before a discussion on the practice of placing housing units in industrial parks.

Tom Schubmehl, a member of the planning board and Pembroke resident, said he had some reservations about the Town Board’s application to modify zoning in the Interchange District -- a wide area around Thruway Exit 48A, extending to Route 5 along Route 77.

“Is there any other district in the county industrial districts that allows residential use? Schubmehl asked, directing his question to County Planning Director Felipe Oltramari.

Oltramari said that the Interchange District was different from a traditional industrial district.

“It can have commercial and it can have industrial … it has the Flying J (Travel Center). It has other things like that and includes an industrial park from the EDC,” Oltramari said, adding that he couldn’t think of other similar areas in the county that permit mixed-use facilities.

Schubmehl said he couldn’t either and said “it is a concern of mine that we start letting residential fill in this space. It's going to be no different than the rest of Pembroke.”

“I know it has no bearing on the impact of inter-community that we're discussing here tonight as a County Planning Board, but as a resident of Pembroke, I think it's bad idea,” he stated.

$3 Million Commercial/Resident Project Proposed

The Genesee County Economic Development Center is touting a $3 million commercial/residential project at its Buffalo East Technology Park, which is situated in the Interchange District.

J & R Fancher Property Holdings LLC has proposed building a 32,254-square-foot, three-story facility on two acres in the park, and is waiting for a public hearing and GCEDC board vote on its application to receive more than $600,000 in property, sales and mortgage tax incentives.

According to the GCEDC, the project consists of 17 market-rate, one- and two-bedroom apartments on the second and third floors, with space for four commercial tenants, as well as indoor parking and a fitness center on the ground floor.

Chris Suozzi, GCEDC vice president of business development, was on the planning board’s Zoom videoconference meeting last night, and pointed out that his agency worked with the Town of Pembroke on attracting the venture.

“They were all in favor for it,” Suozzi said. “Certainly, there's a housing shortage need in Genesee County. If anybody hasn't seen the housing study that LaBella (Associates) put out, (it’s) on the Genesee County website. And there's a big shortage of housing.”

GCEDC: 'Live, Work, Play' Model

Suozzi said the GCEDC is promoting a “live, work, play model” and that housing – particularly at industrial parks -- is an essential component in that thinking.

“And I know the location … in Pembroke is a great location because it's across from the school and already has a Tim Hortons that wasn't part of the EDC project, but it has that ability to be right next door to it and also has 7.9 acres in total that is being proposed, of which 2 (acres) are buildable and the other 5.9 are wetlands,” Suozzi offered. “They're all protected. It's a green space.”

He went on to say the project will generate tax revenue for the Town of Pembroke and reiterated that the town board is endorsing it.

Schubmehl then asked Suozzi if the GCEDC was going to consider residential at the WNY Science & Technology Advanced Manufacturing Park (STAMP) in the Town of Alabama.

“Well, you know, if the town said yes, I would certainly look at it, but it's not really up to Chris Suozzi and it’s not up to the EDC -- it's up to the municipality,” he said, again referencing a housing shortage.

“We look at economic development as a whole, and we bring in these companies … and the workers are living in Rochester and Buffalo, (so) we’re not optimizing the economic benefit of Genesee County,” he said. “And that's what that housing studies are showing; (that) there's a big need and we're missing the boat in terms of that revenue staying right in our county.

“So, to me, this is a new world right now and housing’s a big part of it, and the 'live, work, play' model is starting to change what's going on Downtown Buffalo right now … It's because all these old factories are being recondition and rehabbed and the millennials are jumping all over them and they're seeing growth in their workforce.”

Director Promotes Mixed Use for STAMP Site

Oltramari said he could foresee mixed-use buildings at the STAMP site, especially in a technology district closest to the hamlet of Alabama.

“I could see mixed-use buildings in that because the whole point of that is sort of having like an actual link between the hamlet and the business park,” he said. “You could have commercial businesses on the bottom floor, sort of like a main street kind of scenario. And I think that's been the vision for, you know, that kind of part of the park for a while now. So, I think even the town would be in favor of that at STAMP.”

Schubmehl asked whether or not the “live, work” model was actually in the proposal in front of the board, which prompted Oltramari to say he didn’t see it as a major issue.

“I think the era of separating uses, just for the sake of it commercial from residential or, you know, the whole reasoning behind that is to keep incompatible uses apart,” he said. “I don’t see that as a reason anymore, especially in the business parks.”

Planning Board Chair Laraine Caton then asked for a vote and all members, including Schubmehl, voted in favor of the request.

“No, I'm not opposed to it for the purposes as a planning board, we’re worried about inter-community problems here,” Schubmehl said. “And that's not an inter-community problem.”

In other action, planners:

-- Recommended approval with modifications of a special use permit for Jesse and Jolene Coots of Le Roy to operate an ATV, automotive event, hill climb, mud bog and time trial course on 10 acres of a 110-acre vacant parcel of land that they own on Perry Road in Pavilion.

The applicants said they plan to hold events two or three times this year (with the schedule dependent upon the COVID-19 pandemic).

The board’s modifications focus on the applicant obtaining written documentation from NYS Department of Conservation that the project will not be encroaching on wetlands as well as a permit from the Army Corps of Engineers for the potential Federal Wetlands. It also asks that the Coots submit an application for 9-1-1 Address Verification to the Genesee County Sheriff's Office to ensure that an address is assigned that meets Enhanced 9-1-1 standards.

-- Recommended approval with modifications of a special use permit request from Waifin Properties LLC of Clarence Center to operate a contractor’s yard in a Commercial District at 850 Main Road, Pembroke.

The proposed yard would encompass a 100-foot by 100-foot area on a 7.6-acre lot.

The board said the applicant is required to surround equipment and materials storage area with a fence of at least 8 feet high that has a gate, which shall be closed and locked except during working hours.