New proposal to boost chip manufacturing in New York State

ALBANY, N.Y. (NEWS10)---New York State is becoming a major hub for chip manufacturing. Now that more chips will be produced in the state, Senator Chuck Schumer wants to make sure that companies that do business with the federal government limit the use of semiconductor chips made in China.

"I am proposing, in this year’s defense authorization, the NDAA, that when the federal government is buying a product or service, we block the use of chips from three of the biggest and most dangerous Chinese companies in the game— SMIC, CXMT, and YMTC," said Schumer.

He said having these Chinese made chips in the federal supply chain is a direct threat to national security and economic security.

Schumer’s proposal comes just weeks after major tech manufacturing announcements in Syracuse, Poughkeepsie and the Capital Region.

"When we look at the CHIPS Act, there is two elements, the manufacturing piece and the R & D piece," Dave Anderson, President of NY Creates explained. "And the research and development part is an area that we are most interested in, and that calls for the development of a national semiconductor technology center and we would like that national technology center to be here at Albany Nanotech.

Reporter Jamie DeLine asked Senator Schumer when New York State will really start to see this industry boom.

"The administration—I know, because I talk to them regularly, wants to move very, very quickly to get the chip fab dollars out, and the investment tax credit occurs automatically," said Schumer. "We made sure in the legislation that they can use both together so it’s going to happen quickly, quickly. I wouldn’t be surprised in the next few months we start seeing some grants issued."