Governor Hochul Announces Launch of New Semiconductor Manufacturing Workforce Training Tax Credit Program

Governor Kathy Hochul today announced the launch of the Semiconductor Manufacturing Workforce Training Incentive Program, designed to connect workforce training programs to careers in the state's rapidly growing semiconductor industry sector. The new program, administered by Empire State Development, supports eligible semiconductor manufacturers and manufacturing businesses by offsetting the costs of training employees for high-demand manufacturing careers, helping companies build the skilled workforce needed to support continued industry growth across New York State.

"New York is making historic investments to become the nation's premier destination for semiconductor manufacturing, and that means investing in people just as much as projects," Governor Hochul said. "This new workforce training tax credit will help manufacturers develop the highly skilled workforce they need while creating new opportunities for New Yorkers to build careers in one of the world's fastest-growing industries."

The program supports employer-led training that addresses specific business needs, enhances employee skills, improves productivity and creates opportunities for career advancement. Eligible training may be provided directly by employers, third-party providers or New York State Registered Apprenticeship Programs. Tax credits can cover up to 75 percent of eligible training costs, including employee wages during training, curriculum development, instructor costs and qualifying wraparound services, up to $25,000 per employee receiving eligible training. Eligible semiconductor manufacturing businesses may receive up to $5 million in credits over the life of the program, while other eligible manufacturing businesses may receive up to $1 million.

To qualify, businesses must operate in New York State as eligible semiconductor manufacturing or manufacturing businesses, submit an approved workforce training plan before training begins, and demonstrate compliance with worker protection and environmental requirements. Applications are now being accepted through ESD. Additional program information, eligibility requirements and application materials are available here.

Empire State Development President, CEO and Commissioner Hope Knight said, "A strong semiconductor ecosystem depends on a strong workforce. By helping employers invest in training, New York is ensuring businesses have access to the talent they need while creating pathways to high-quality manufacturing careers for New Yorkers. This program complements our broader strategy to grow the semiconductor industry and reinforce New York's position as a global leader in advanced manufacturing."

The new program demonstrates New York's semiconductor leadership by directly addressing the national shortage of skilled workers threatening the resurgence of domestic chip manufacturing. Recent industry reports are forecasting a nationwide deficit of up to 157,000 skilled full-time semiconductor manufacturing workers by 2030. By providing state support to offset training costs and facilitate new hires, New York is answering the urgent call for industry and government to pool resources, ensuring that the industry has the workers it needs while empowering New Yorkers with accessible career opportunities in a fast-growing industry.

This also builds on Governor Hochul's comprehensive strategy to grow New York's semiconductor industry. To ensure New Yorkers are prepared for the thousands of high-paying jobs created by these investments, Governor Hochul is leading an ambitious statewide workforce development strategy. This effort is anchored by the $200 million ON-RAMP initiative, which is establishing four advanced manufacturing workforce centers across Upstate New York. This includes the flagship ON-RAMP facility on the Southside of Syracuse, a hub designed to provide critical skills training and wraparound services - such as childcare and transportation - to create accessible career pathways.

Last week, Governor Hochul celebrated a major milestone at Micron's $100 billion semiconductor manufacturing campus in Central New York as workers poured the first concrete foundations. This major milestone was achieved less than six months after breaking ground and marks a pivotal turning point from site preparation to full vertical construction.

Semiconductors power everything from smartphones to satellites, and the sector is poised to generate revenues of $1 trillion globally by the end of the decade. The industry also brings an outsized economic impact for workers and families - 60 percent of semiconductor manufacturing jobs don't require a four-year degree and pay more than 25 percent more than other advanced manufacturing sectors on average. With more than $126 billion in new investments announced since 2022, New York State is home to the nation's fastest growing semiconductor manufacturing ecosystem. By the end of the decade, one in four U.S.-made chips will be produced within 350 miles of Upstate New York - more than any other region in the nation.