Governor Hochul Announces $25 Million Competitive Solicitation for New Downstate Chip Design Center

Governor Hochul today announced the launch of a competitive Request for Applications (RFA) offering up to $25 million in capital grant funding to establish a world-class Semiconductor Design Center in Downstate New York. The initiative aims to activate the Downstate region's world-class tech workforce and leading research institutions to attract investment from the fastest growing semiconductor sector,, chip design.

"New York has become the nation's semiconductor leader by making historic investments in the people, places and infrastructure needed to bring this critical industry back to America," Governor Hochul said. "This $25 million investment will build on that success by harnessing Downstate's unmatched talent, research institutions and technology ecosystem to establish New York as a global center for chip design. By ensuring the technologies of tomorrow are both designed and manufactured here, we are creating good-paying jobs, attracting new investment and strengthening every link in New York's semiconductor supply chain."

Empire State Development President, CEO and Commissioner Hope Knight said, "New York's semiconductor ecosystem is expanding to New York City and the broader Downstate region, making the industry's tremendous economic potential a truly statewide opportunity. By connecting Upstate's world-class research and manufacturing assets with Downstate's unmatched technology talent, leading academic institutions, startup community and venture capital network, the Downstate Chip Design Center will strengthen every link in the semiconductor supply chain and ensure the chips of the future are both designed and built in New York."

Since 2022, semiconductor companies have committed over $124 billion in new manufacturing and innovation investments across Upstate New York. This provides an opportunity to pair the state's world-class manufacturing and research infrastructure with new investments to grow New York's leadership in chip design. With global semiconductor revenues projected to reach $1 trillion by the end of 2026 and private sector commitments in chip design expected to reach $500 billion over the next decade, the Downstate Chip Design Center will ensure the next generation of advanced technologies are both designed and built in New York.

Chip design companies don't manufacture chips; they use software to create digital blueprints for the leading-edge chips that enable critical technologies. Downstate New York has the foundational elements required to be a leading hub for this fast-growing segment: a thriving tech sector, leading universities, deep pools of venture capital funding for startups and major existing operations for global tech industry leaders. The Center will complement New York's robust Upstate chip manufacturing infrastructure by leveraging Downstate's foundational elements and deep knowledge economy to establish a world-class hub for semiconductor design. The Center will incubate startups, train the next generation of chip designers, and connect new and emerging companies with New York's broader semiconductor industry, strengthening the state's semiconductor ecosystem from design through manufacturing.

Eligible applicants for the Downstate Chip Design Center RFA include non-profit organizations, academic or research institutions, and multi-entity consortia led by an eligible non-profit fiscal agent. The proposed facility must be located in New York City, on Long Island, or in the following counties within the Hudson Valley: Westchester, Rockland, Orange, Dutchess and Putnam. Phase 1 Concept Papers are due October 26, 2026 by 2:00 p.m.

The RFA is available on the Empire State Development website..