US Invests $825 Million in Albany Research Center to Strengthen Semiconductor Supply Chain

The United States is bolstering its position in the global semiconductor war by investing in research and development (R&D) centers, in addition to attracting production facilities. On October 31, the US Department of Commerce announced plans to invest $825 million in Albany, New York, to establish the National Semiconductor Technology Center (NSTC) for R&D of semiconductor manufacturing capabilities.

The New York center will focus on developing parts and equipment necessary for semiconductor manufacturing. According to The New York Times, the Department of Commerce plans to announce two additional centers to develop design and packaging capabilities in the future. The New York center will be established in the Albany Nanotech Complex and will feature a high-NA extreme ultraviolet (EUV) exposure machine, a cutting-edge technology only available in two public research institutions worldwide.

The US expects significant R&D synergy effects with semiconductor companies in Albany, including IBM, ASML, and Global Foundries, which are already conducting research in the Albany Nanotech Complex. Several semiconductor companies, such as Micron Technology, Global Foundry, and Wolfspeed, have completed preliminary approval procedures for construction and expansion of production facilities in New York. The US government anticipates that New York will account for 25% of the country’s semiconductor production.

Democratic Senate Minority Leader Chuck Schumer (New York) emphasized the significance of the research to be conducted in Albany, stating that it will enable the US military to maintain a competitive edge. The construction of the New York center is also seen as a strategic move to counter China’s growing influence in the semiconductor industry, with the Semiconductor Support Act (CHIPS Acts) playing a crucial role in this effort.

US Secretary of Commerce Gina Lermondo highlighted the importance of the New York center in maintaining America’s leadership in innovation, citing the Semiconductor Assistance Act as a key factor in ensuring the US remains a competitive nation. The US continues to support Taiwan in the cross-strait conflict between the US and China, while competing in the semiconductor industry. Notably, Taiwan’s TSMC is the exclusive producer of Nvidia artificial intelligence (AI) chips.

Taiwan’s economy is experiencing significant growth, with its GDP increasing by 3.97% in the third quarter of this year compared to the same period last year, according to the Main Administration.