Empire State Today

Menlo Micro Cites Schumer's Chips & Science Act, Governor's Excelsior Jobs Tax Credits as the Lightning Rod to Bringing Semiconductor Jobs Back to U.S., New First-Of-Its-Kind Microchip Switch Manufacturing Facility To Region

Menlo Micro's Ideal Fab Builds on State and Federal Efforts to Grow Chip Manufacturing Ecosystem in New York State, Follows Historic Partnerships to Bring Micron, Edwards Vacuum to New York

Governor Kathy Hochul and U.S. Senate Majority Leader Charles Schumer on July 11 announced that following their long advocacy to make New York a global microelectronics manufacturing hub and Schumer's personal call to Menlo Micro CEO Russ Garcia last year, the company has heeded their calls and will invest over $50 million to build their first domestic microelectronics fabrication facility in Tompkins County, creating over 100 new good-paying jobs.

"With this agreement to bring Menlo Microsystems to Tompkins County, we are once again declaring New York State as Chips Country," Governor Hochul said. "Menlo Micro's groundbreaking chip technology powers the tools and electronics that New Yorkers rely on every day, and thanks to a remarkable partnership between local, state, and federal officials, their New York production facility will create more than 100 high-tech jobs and unlock millions of dollars in investment to support the entire region. I am excited to welcome Menlo to New York's chip-making ecosystem as we continue our work to attract the innovative, 21st century businesses that will provide good-paying jobs, grow our advanced manufacturing sector, and move our economy forward."

Senate Majority Leader Chuck Schumer said, "With my CHIPS & Science Act as the lighting rod, Menlo Micro will invest $50+ million to build their first domestic manufacturing facility for their cutting-edge technology right here in Tompkins County! Last year, I personally called Menlo Micro's CEO to tell him that Upstate New York is the next frontier for microelectronic and semiconductor manufacturing, and I'm thrilled they are now bringing 100 new good-paying jobs to Tompkins County. I applaud Menlo Micro for this major investment that will help drive Tompkins County and America's economic future in tech manufacturing, and thank Governor Hochul for her partnership to help transform Upstate NY into a global center for innovation, high tech and advanced manufacturing jobs. The greater Ithaca area is unquestionably leading the charge in research and development and building the future of technology, and Menlo Micro will help further supercharge the region's leadership, while helping secure America's critical microelectronics supply chains that power everything from 5G communications to the power grid to aerospace engineering with their switch technology made right here in Tompkins County. From Micron's historic investment in Central NY, to Wolfspeed's new fab in the Mohawk Valley, Edwards Vacuum soon beginning production in Western NY, GlobalFoundries planned expansion in the Capital Region, Onsemi investing in the Hudson Valley, and now Menlo Micro supercharging our microelectronics supply chain in the Southern Tier, we are bringing manufacturing back to America, back to Upstate New York!"

CEO of Menlo Micro Russ Garcia said, "On July 11 announcement represents the first step toward significantly increasing the domestic production capacity of our Ideal Switch to help secure critical infrastructure and further strengthen America's technology stronghold. We want to thank Senate Majority Leader Schumer for his leadership on the CHIPS and Science Act, which is directly supportive of and aligned with our plan to onshore our manufacturing capabilities. We look forward to continuing to work with Sen. Schumer, Gov. Hochul, Sen. Gillibrand, Rep. Molinaro and the entire New York delegation as we begin ushering in the next generation of electrification, delivering unprecedented cost and energy savings to essential U.S. industries. We believe this fab modernization project is in 100 percent alignment with the presidential directive on bringing semiconductor manufacturing back to the United States."

Schumer and Hochul said that the retrofitting of Menlo Micro's new Ideal fab has already begun in the Village of Lansing. Menlo Micro has pioneered next generation switch technology. These hyper-efficient switches have broad base application, including aerospace, energy, communications, critical infrastructure and more. These switches are also a vital component of the microelectronics industry, supporting the growth of the domestic semiconductor industry that is being driven by Schumer's CHIPS and Science Act.

To support the construction of Menlo Micro's new fab, Empire State Development will provide $6.5 million in performance-based Excelsior Jobs Tax Credits in exchange for 122 new jobs at their Ithaca facility. As with all Excelsior Jobs projects, Menlo Micro will receive the credits after demonstrating that they have met their job and investment commitments.

With a legacy of development in upstate New York, Menlo Micro expects U.S.-based manufacturing estimated to begin in 2024 with the new Tompkins County-based fab that will produce thousands of wafers per month when fully operational. Menlo Micro has active university partnerships with the SUNY Polytechnic Institute and the University at Albany, with hopes to expand its research and workforce development partnerships to Cornell University and other universities across Upstate New York with the launch of the new Ideal Fab in Tompkins County.

Thanks to Schumer's CHIPS and Science Act and Governor Hochul's transformative Green CHIPS legislation, Upstate New York has seen a major revival in tech manufacturing. Micron has announced an historic $100 billion investment to build a cutting-edge memory fab in Central New York, GlobalFoundries is considering an expansion in the Capital Region, Onsemi recently acquired a fab in the Hudson Valley to be home to the only 12-inch power discrete and image sensor fab in America, and Wolfspeed recently opened the first, largest, and only 200mm silicon carbide fabrication facility in the world in the Mohawk Valley. In addition, Upstate New York is also home to suppliers like Corning Incorporated, which manufacturers glass critical to the microchip industry at its Canton and Fairport, NY plants, and Edwards Vacuum, recently announced a $300+ million investment to build a dry pump manufacturing facility to support the chip industry in the Western New York region. Schumer is also pushing to make the Albany Nanotech Complex, where Menlo currently conducts R&D into next-generation semiconductor components, the leading hub of the nation's first National Semiconductor Technology Center (NSTC). The major expansion of domestic semiconductor production is also creating significant opportunities for the growth in use of Menlo Micro's technology, leading to investment like the announcement in Tompkins County.

Schumer has a long history of fighting to advance investment in semiconductor manufacturing and R&D and the broader tech economy at the federal level. In May 2020, Schumer introduced his bipartisan Endless Frontier Act to surge new resources into federal R&D through the creation of a National Science Foundation technology directorate focused on key technology areas like quantum computing, advanced energy, AI, high performance computing, and more. Schumer's Endless Frontier Act also proposed a new $10 billion regional technology hub program to invest in regions around the country with great potential to lead the nation in technology research, development, and manufacturing.

In June 2020, Schumer introduced his bipartisan American Foundries Act to authorize new federal incentives for expanding domestic semiconductor manufacturing and R&D. Schumer successfully added this bill as an amendment to the Fiscal Year 2021 National Defense Authorization Act (NDAA), authorizing the CHIPS semiconductor manufacturing and R&D programs. In June 2021, Schumer then successfully passed through the Senate his U.S. Innovation and Competition Act (USICA), legislation he introduced that combined his Endless Frontier Act to make a significant investment in research, development, manufacturing and innovation with other competitiveness legislation. As part of this package, Schumer also included $52 billion in emergency supplemental appropriations to implement semiconductor-related manufacturing and R&D programs like the NSTC that he had successfully pushed to authorize in the Fiscal Year 2021 National Defense Authorization Act. These legislative efforts culminated in the final passage and signing into law of the CHIPS and Science Act last year.

In August 2022, Governor Hochul signed New York's historic, first-in-the-nation Green CHIPS legislation to boost semiconductor manufacturing in the state while maintaining important environmental protections. Green CHIPS allows to New York capitalize on a historic opportunity to attract chip manufacturers to the state, generating billions of dollars in private-sector investment, creating good, high-paying jobs, and lowering greenhouse gas emissions related to chip production. In establishing the state's Green CHIPS program, the legislation also positions New York State to greatly benefit from the federal CHIPS and Science Act.

Empire State Development President CEO and Commissioner Hope Knight said, "Menlo Micro is a perfect example of the talent and supply chain pipelines that New York State has been fostering for many years. From their R&D department in Albany to the new fabrication plant in Ithaca, we have made strategic investments to ensure that advanced manufacturers, both large and small will make the move to take advantage of the talented workforce and many resources available in New York State."

SUNY Chancellor John B. King, Jr. said, "SUNY is immensely proud to welcome Menlo Micro's first domestic fabrication lab to New York State. It will not only be a leader in innovation but an incubator of hundreds of highly skilled, in-demand jobs for which SUNY is prepared to provide the workforce. Already, Menlo Micro has benefited from partnerships with SUNY Polytechnic Institute and the University at Albany, where its R&D component is located. These partnerships have led to onsite internships for our students, giving them the hands-on experience with cutting-edge technology that they need to succeed in the growing semiconductor field."

State Senator Lea Webb said, “I am appreciative that Menlo Microsystems has decided to invest more than $50 million to build a microelectronics fabrication facility in Lansing. This project will deliver more than 100 good-paying jobs to Tompkins County. Thank you to Senator Schumer and Governor Hochul for their continued advocacy to bring semiconductor jobs back to Upstate New York by making our region a center of tech manufacturing.”

Assemblymember Anna Kelles said, "I applaud Gov. Hochul and Sen. Schumer’s success in securing this investment and I look forward to welcoming Menlo Micro and its workforce into our community. With the growth of microchip technology in upstate New York, this is an exciting time in our region economically and also providing possibilities to enhance our cultural, social, and recreational services. Our region is home to exceptional colleges and universities, and this is a great opportunity to attract and retain graduates in New York with high-skilled, in-demand jobs that allow them to build their careers and lives here and join a vibrant, caring community."

Tompkins County Legislature Chair Shawna Black said, "It's wonderful to see a company like Menlo Micro making Tompkins County its new home. Our nearby universities boast some of the most talented new entrants to the workforce in the country, and bringing high-value jobs to our area will ensure we can retain as much of that talent as possible as we build a thriving economy to serve the needs of our community. Thank you to Senator Schumer for his leadership in passing the CHIPS and Science Act and his advocacy on behalf of New York State to ensure Menlo Micro begins its first domestic production here."

President of Ithaca Area Economic Development Heather McDaniel said, "This is a tremendous investment in the Ithaca area and a testament to the local, state, and federal partners that worked together to bring Menlo Micro's fab to our community., with a special thanks to Senator Schumer for ensuring passage of the CHIPS and Science Act, and to encourage Menlo Micro to site in New York State. They will benefit from our dedicated and highly educated workforce, and we stand ready to support them in their efforts to create quality employment opportunities."

Original source can be found here.