us chip innovation gets billion-dollar boost in new york

2025-07-16 general

Albany, Wednesday, 16 July 2025.
The National Semiconductor Technology Center has launched its flagship R&D facility in Albany. This launch marks a significant step in bolstering domestic chip production. New York state invested $1 billion to expand semiconductor research and development. The Extreme Ultraviolet Accelerator is located at NY Creates’ Albany NanoTech Complex. This complex gives companies like Nvidia, ASML and TSMC access to enhanced R&D infrastructure. The new facility features over 4645 m² of cleanroom space. The federal government is proposing an $825 million investment in the EUV Accelerator.

chips act catalyst

The opening of the National Semiconductor Technology Center (NSTC) and its Extreme Ultraviolet (EUV) Accelerator in Albany marks a pivotal moment for the U.S. semiconductor industry [1][5]. Senator Chuck Schumer emphasized the importance of this milestone, stating that the facility positions Albany and upstate New York as the new global frontier for chipmaking innovation [4]. This initiative, fueled by the CHIPS Act, aims to secure American leadership in semiconductor technology, drawing top scientists, universities, and companies to collaborate on next-generation microchips [2][5].

economic impact and job creation

This project is expected to generate substantial economic benefits. The NanoFab Reflection construction is projected to create 500 to 600 union construction jobs [1]. The broader impact of the CHIPS Act is already evident. Since its enactment in 2022, U.S. semiconductor foreign direct investment (FDI) projects have surged from 11 to 38 [8]. Capital expenditure has increased by over 900%, and job creation is up by 250%, according to OCO Global analysis [8]. Representative Paul Tonko highlighted the importance of public-private sector partnerships in driving this growth [7].

asml’s euv technology and future capabilities

A critical component of the new facility is the Extreme Ultraviolet Lithography (EUV) technology, which is a $450 million tool utilizing high-power lasers to produce advanced microchips [3][6]. The EUV Accelerator provides access to lithography tools, including a high-numerical-aperture EUV machine produced by ASML [1]. This ASML machine uses light with a wavelength of 13.5 nanometers, enabling the printing of microchips with an 8 nm resolution [1]. Access to High NA EUV equipment is planned for next year, further enhancing the facility’s capabilities [4].

strategic implications and market positioning

From an investor’s perspective, the Albany facility strengthens the competitive positioning of companies involved in the U.S. semiconductor ecosystem. Deirdre Hanford, CEO of Natcast, noted that this marks the first public access to EUV capabilities in the United States, calling it profound [3][6]. With the global AI revolution heavily reliant on advanced semiconductors, access to such technology is crucial [7]. The concentration of resources and talent in Albany is expected to accelerate research and development, potentially leading to breakthroughs and increased market share for participating companies [5].

potential risks and tariff considerations

Investors should remain vigilant regarding potential risks. Former President Trump has expressed support for tariffs on semiconductors, which could impact the industry [7][8]. Tariffs on imports from the EU and Mexico, potentially exceeding 25%, are under consideration, creating uncertainty for capital planning and cross-border investment [8]. Despite these potential headwinds, participation in strategic corridors like the New York I-81 corridor, linking Albany Nanotech to Grenoble, France, can offer a form of strategic insulation against market shocks [8].

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chips act semiconductor r&d