Employees collaborating in a state-of-the-art semiconductor manufacturing environment.
Two North Texas technology companies are set to receive over $80 million in funding through the CHIPS and Science Act, aimed at boosting semiconductor manufacturing. This economic infusion comes as President Joe Biden prepares to exit office and highlights the act’s significance in fostering U.S. tech manufacturing, despite some political criticism. The initiative not only benefits Texas but also extends substantial investments to New York, promising job creation and workforce development in the semiconductor sector.
Dallas, Texas – Two technology companies in North Texas will benefit from over $80 million in funding from the CHIPS and Science Act, a significant initiative aimed at enhancing semiconductor manufacturing in the United States. With President Joe Biden preparing to leave office, the awards from this act are seen as a timely boost for the local economy.
Following its signing in 2022, the CHIPS and Science Act has been a focal point in discussions about the future of technology manufacturing in the U.S. Supporters emphasize its critical role in securing America’s position in the semiconductor industry, which is vital for numerous sectors, including automotive, electronics, and telecommunications. However, the act has faced scrutiny, especially from members of the previous Trump administration, who have criticized its financial strategy. Trump, labeling the initiative a “bad deal,” has suggested its repeal, while House Speaker Mike Johnson has indicated that the CHIPS Act’s future is uncertain under the current GOP agenda.
As a part of broader support for semiconductor projects, the Act has allocated substantial investments beyond Texas, particularly in New York, with over $100 billion earmarked for microchip development that includes a new megafactory in Onondaga County and a significant $315 million expansion at a Corning specialty glass plant in St. Lawrence County. Other regions benefiting from this funding include the Mohawk Valley, Capitol Region, Finger Lakes, and Western New York. Importantly, this initiative also incorporates a $40 million workforce development project to train local residents for high-tech manufacturing roles, responding to the growing demand for skilled labor in this sector.
Heather C. Mulligan, president and CEO of the Business Council of New York, has noted the potential for up to 50,000 new jobs in central New York due to investments from companies such as Micron. This emphasizes the necessity for upskilling the local workforce to meet the needs of emerging high-tech industries. In addition to direct job creation, Micron’s investments could lead to an estimated 40,000 indirect jobs, marking a transformative shift for northern New York’s economy.
Since its inception, the CHIPS Act has facilitated over $110 billion in investments across the U.S., reflecting its broad impact on the economy and the technology landscape. The Business Council has called on Congress to re-authorize a 25% investment tax credit established by the Act, which is set to expire in 2026. Such measures are critical to maintaining the momentum of semiconductor development and ensuring long-term competitiveness in this essential industry.
Discussions regarding potential extensions of tax breaks for the semiconductor sector continue amidst proposed legislative changes tied to the Trump administration’s policies. The outcomes of these discussions could significantly influence the future of American manufacturing and technology sectors.
News Summary DarrowEverett LLP has announced the addition of Vishal S. Petigara to its Mergers…
News Summary New York City's real estate market is experiencing a notable revival in early…
News Summary NYC Health + Hospitals has renewed a $1.9 billion contract with RightSourcing for…
News Summary Christopher Community, Inc. (CCI) has appointed Jeffrey Eysaman as its new president and…
News Summary The New York State Assembly has passed the Medical Aid in Dying Act,…
News Summary New York City has secured funding for the MTA's historic $68.4 billion capital…