IBM and 40+ business and academic leaders urge Congress to act on semiconductor crisis

January 13, 2022

New York State Congressional Delegation
United States Senate
United States House of Representatives
Washington, D.C. 20515

Dear Members of the New York Congressional Delegation:

The ongoing global semiconductor shortage is disrupting our supply chains, impacting consumers and businesses, and threatening our national security. This shortage exposes the lack of sustained domestic investment in the semiconductor industry and highlights the need for the United States to reinvest to guarantee a steady and secure supply of chips for long into the future.

We are a group of academics, businesses, government and non-profit leaders who are committed to leveraging existing semiconductor infrastructure in New York to combat the current shortage. Together, we urge you to pass the U.S. Innovation and Competition Act (USICA), which, among other things, would fully fund the Creating Helpful Incentives to Produce Semiconductors for America Act (CHIPS Act). Funding the CHIPS Act will accelerate investments in new manufacturing facilities, boost domestic semiconductor production, and establish a National Semiconductor Technology Center (NSTC) and the National Advanced Packaging Manufacturing Program.

The NSTC will serve as a hub to marshal semiconductor expertise and resources to deliver much-needed breakthroughs in chip innovation and production, and it will support a steady supply of chips now and long into the future. An advanced research hub like the NSTC will require a unique innovation ecosystem that is ‘prototype ready’ with first-class resources, scientists, facilities, and partners who can work quickly and efficiently to ease the global chip shortage and secure a strong domestic chip supply chain for the future.

As Senator Chuck Schumer said earlier this year and New York Governor Kathy Hochul recently wrote in Bloomberg, the NSTC needs a proven chip innovation ecosystem, which has a sophisticated infrastructure that is already operational and is backed by partner companies, academic institutions, and a highly skilled workforce. For instance, the Albany Nanotech Complex is the product of billions of dollars in public and private investment over two decades and now hosts more than 2,700 industry experts, staff, students, and faculty who have leveraged the center to produce leading edge semiconductor innovations such as the world’s first 2 nanometer node chip technology.

We have no time to waste. For the United States to retain its semiconductor leadership, we must act with speed and the NSTC should use existing assets to produce results quickly. To enable fast results, our group includes universities and academic institutions in New York and across the United States to strengthen the semiconductor R&D pipeline, cultivate a diverse and talented semiconductor workforce and translate technology into tangible business and consumer solutions.

How we rise to the challenge of building resiliency back into our semiconductor supply chain is a defining moment not only for the nation, but also New York State, to retain our position as a leader in semiconductor innovation, research expertise and the workforce of the future. Additionally, New York is uniquely positioned to support new American semiconductor fabs, as we have more shovel-ready sites than any other state and have already established the infrastructure needed for new chip fabrication.

That is why we urge the New York congressional delegation to support R&D, innovation and manufacturing by fully funding the CHIPS Act in USICA. In doing so, we can cement the United States’ leadership in the semiconductor industry and strengthen our supply chains, economy, and national security for years to come.

We look forward to working with you on this shared goal.

Sincerely,

Jeffrey B. Shealy, PhD, MBA
Founder & CEO
Akoustis, Inc.

Daniel Leibholz
SVP & Chief Technology Officer
Analog Devices

Benjamin Bunday
President
AMAG Consulting

Ron Kelly
Chief Executive Officer
Ambature

Vincent Guerriero
Sr. Director, Silicon Product Group – META Center
Applied Materials

Tom Kelly
Chief Executive Officer
Blue Cheetah

Doon Gibbs
President
Brookhaven Science Associates

Mark Eagan
President & Chief Executive Officer
Center for Economic Growth

Joshua C. Brumberg, Ph.D.
Dean of the Sciences, The Graduate Center
City University of New York

John L. Sheff
Director of Public & Industry Affairs
Danfoss

Hope Knight
Acting Commissioner
Empire State Development

James A. O’Neill, PhD
Chief Technology Officer
Entegris

Dr. Thomas Caulfield
Chief Executive Officer
GlobalFoundries, U.S., Inc.

Heather Hage
President & CEO
Griffiss Institute

Brian Sapp
Senior Director
i3 Microsystems

Dr. Darío Gil
Senior Vice President and Director of Research
IBM

Loria Brown Gordon, Ph.D.
Associate Dean, Du Bois – Harvey Honors College
Jackson State University

Dennis Ralston
Senior Director, Government Relations and Cooperative R&D
KLA

Mark Campito
Chief Executive Officer
Marktech Optoelectronics

Vladimir Bulovic
Director
MIT.nano

Steven J. DiMeo
President
Mohawk Valley EDGE

Christine B Whitman
Chairman & CEO
Mosaic Microsystems LLC

Tim Vehling
Senior Vice President, Product & Business Development
Mythic

Ryan Silva
Executive Director
New York State Economic Development Council

Shahin Sharifzadeh
Co-CEO
NexGen Power Systems Inc.

Paul Kelly
Chief Operating Officer
NY CREATES

Hassane El-Khoury
President and CEO
onsemi

Ganesh Subbarayan, Ph.D.
Professor of Mechanical Engineering
Purdue University

Robert Hull, Ph.D.
Acting Vice President for Research, Henry Burlage Jr. Professor of Engineering, and Director of Center for Materials, Devices, and Integrated Systems
Material Science and Engineering Department
Rensselaer Polytechnic Institute

Paul Farrar Jr.
Vice President Strategy
SCREEN Semiconductor Solutions Co., Ltd

John Levy, Chief Executive Officer
Oleg Mukhanov, Chief Technical Officer
Seeqc

Johanna Duncan-Poitier
Senior Vice Chancellor for Community Colleges and the Education Pipeline
State University of New York System Administration

Shadi Sandvik, PhD
Provost-in-Charge
State University of New York System Administration

Bahgat Sammakia, PhD
Vice President of Research
State University of New York at Binghamton

Krishnaswami Srihari, PhD
Dean, College of Engineering and Applied Science
State University of New York at Binghamton

Jon Longtin, PhD
Interim Dean of the College of Engineering and Applied Sciences
Stony Brook University-State University of New York

Rich Reeder, PhD
Vice President for Research
Stony Brook University-State University of New York

Mike O’Brien
Vice President
Synopsys, Inc.

Alexander Oscilowski
President, TEL Technology Center America
TEL

Mark Tolbert
President & CEO
Toptica Photonics, Inc.

Sameer Desai
Vice President, Corporate Development and Investor Relations
TTM Technology

Venu Govindaraju, PhD
Vice President for Research and Economic Development
SUNY Distinguished Professor
University at Buffalo

Rashid Bashir
Dean, Grainger College of Engineering
University of Illinois at Urbana-Champaign

 

Download the letter as a PDF.

 

 

 

AS CHIP SHORTAGE DISRUPTS GLOBAL SUPPLY CHAINS, SCHUMER LAUNCHES MAJOR PUSH TO MAKE ALBANY NANOTECH THE NATION’S HUB FOR THE NATIONAL SEMICONDUCTOR TECHNOLOGY CENTER AND NATIONAL ADVANCED PACKAGING MANUFACTURING PROGRAM; SENATOR SENDS PERSONAL INVITE TO COMMERCE DEPT. LEADERSHIP TO SEE ALBANY’S WORLD-CLASS FACILITY & NY’S UNIQUE ABILITY TO POWER & REVIVE U.S. CHIP INDUSTRY

01.13.22

Last Year, Schumer Brought Sec. Raimondo To Albany To Pitch Capital Region As The Home Of Future National Semiconductor Center; Schumer Doubles Down On Effort & Calls On Top Brass To Tour Albany Nanotech Campus & See World-Class Facility Firsthand

 New +30 Partner National Coalition – Including IBM, Applied Materials, Tokyo Electron, SUNY, RPI, & MIT, Combined With Unique Support For Startups And Workforce– Makes NY Ideal Spot For NSTC

Schumer To Commerce Department: Come See For Yourself Everything Albany Has To Offer — Albany Nanotech For The NSTC Is A Win-Win-Win; Will Create 1,000+ Good Paying NY Jobs, Supercharge American Manufacturing for the National Semiconductor Industry, And Maintain Global U.S. Tech Leadership

After years of staunch advocacy to invest in domestic semiconductor manufacturing and R&D, including in New York, U.S. Senate Majority Leader Chuck Schumer successfully passed his U.S. Innovation and Competition Act (USICA) in the Senate and immediately brought Secretary Raimondo to the Capital Region to pitch the Albany Nanotech Complex as the ideal hub for the nation’s first National Semiconductor Technology Center (NSTC) and National Advanced Packaging Manufacturing Program (NAPMP), two programs that will be funded by USICA.

To continue this momentum, in a letter sent this week, Schumer directly urged Commerce Secretary Gina Raimondo and Commerce Deputy Secretary Don Graves to tap New York’s premier assets for positioning the U.S. to lead the global chip industry, including the multibillion dollar Albany Nanotech Complex, which he personally invited them to visit to see first-hand how it is a model for the NSTC and NAPMP. Schumer also revealed that Albany Nanotech has assembled a national coalition of over 30 partners across industry, academia, and economic development to compete to be the central hub for the NSTC and NAPMP.

“As Secretary Raimondo heard this summer: Upstate New York’s unique combination of a robust semiconductor supply chain, world-class workforce, sites primed for investment that feature low-cost reliable power and water infrastructure, renowned higher education institutions, and premier facilities like the Albany Nanotech Complex means it has all the ingredients to power and revive the U.S. chip industry, including serving as the hub for the nation’s first National Semiconductor Technology Center and Advanced Packaging Manufacturing Program. Now, it’s time for the Commerce Department to see this unique cauldron of innovation and groundbreaking, collaborative research first-hand,” said Senator Schumer. “I wrote and championed the U.S. Innovation and Competition Act with Upstate New York and facilities like the Albany Nanotech at the forefront of my mind. That is why I personally invited Secretary Raimondo and Deputy Secretary Graves with me to the Capital Region to join me for a tour to see for the first time just how ideally Albany Nanotech’s national partnerships and infrastructure are uniquely suited to lead the NSTC, quickly serve the needs of the nation’s semiconductor industry, and supercharge American chip production and leadership in technology.” 

“NY CREATES has a track record of building connections and capabilities with emerging technology ecosystem partners in academia, industry and government,” said Paul Kelly, Chief Operating Officer, NY CREATES. “Whether it’s working with SUNY and private universities, start-up companies or global leaders, we are actively engaged with a broad cross-section of partners and working to advance technology development in areas ranging from computing to nano-biology. Albany Nanotech’s existing facilities and ecosystem of more than 20 innovative partners collaborating on leading edge semiconductor R&D should be the model for greater national collaboration for the future NSTC.” 

In just the past few months, the Albany Nanotech innovation ecosystem has delivered major leaps forward in semiconductor technology, from unlocking the promise of 2-nanometer technology to chip designs that could cut energy consumption up to 85 percent. No other site in the country is as well suited to accelerate and expand access to American chip innovation than New York’s unique ecosystem, including the Albany Nanotech Complex and a network of universities and small and large businesses that reaches across the state and country,” said Darío Gil, Senior Vice President, IBM and Director of Research.

Schumer included in USICA $52 billion in emergency supplemental appropriations to implement the semiconductor-related manufacturing and R&D programs he had successfully pushed to authorize in the Fiscal Year 2021 National Defense Authorization Act; including $10.5 billion appropriated upfront and allocated over 5 years to implement programs like the National Semiconductor Technology Center (NSTC), National Advanced Packaging Manufacturing Program (NAPMP), and other R&D programs. Funds will also support legacy chip production at companies like GlobalFoundries that is essential to the auto industry, the military, and other critical industries. Schumer is now actively working with President Biden and Speaker Pelosi for the House to move USICA to final passage into law.

Schumer said that Albany Nanotech is the most “shovel-ready” R&D facility in the country to quickly stand up the NSTC and NAPMP. Albany Nanotech is the most advanced, publicly-owned, 300-millimeter semiconductor R&D facility, has well established partnerships with industry leaders and top academic research institutions, including in critical logic and packaging capabilities, and is set up to immediately begin supporting the needs of the broader semiconductor ecosystem, including startups, small businesses, and the workforce. New York is currently home to 88 semiconductor companies that employ over 34,000 New Yorkers, including global industry leaders like GlobalFoundries, Wolfspeed, onsemi, and IBM. In addition, New York offers shovel ready sites primed for further investment by the semiconductor industry, including: White Pine in Central New York, Marcy Nanocenter in the Mohawk Valley, and STAMP in Western New York.

Senator Schumer has a long history of fighting to advance semiconductor manufacturing and R&D in Upstate New York. Last year, Schumer  brought Secretary Raimondo to Malta, NY to announce GlobalFoundries’ plans to build a second chip fab to focus primarily on auto and military chip production, creating thousands of construction and permanent jobs, on top of the 3,000 workers that GlobalFoundries already employs in Malta, and helping to expand domestic supply chains of critical chip technology. During this visit, Schumer also arranged for a meeting between Secretary Raimondo and Albany Nanotech stakeholders, including NY CREATES and IBM, to discuss how New York is well-positioned to quickly stand up the NSTC to serve the needs of the nation’s semiconductor industry. Since that meeting, a coalition of over 30 national partners from industry, academia, and economic development has formed to prepare for Albany Nanotech’s application to compete for the NSTC and NAPMP.  

A copy of Schumer’s letter to Commerce Secretary Gina Raimondo and Deputy Secretary Don Graves appears below:

Dear Secretary Raimondo and Deputy Secretary Graves:

I first want to thank you and President Biden for your leadership in strengthening domestic supply chains and ensuring the U.S. remains on the cutting-edge of new research and development (R&D). As you know, I led the effort to pass in the Senate the U.S. Innovation and Competition Act (USICA) to advance these efforts. Given the chip shortage faced by the nation and that the U.S. is losing its leadership role in the chip industry, I prioritized the inclusion of $52 billion in emergency spending to implement the semiconductor manufacturing and R&D programs that I successfully pushed to authorize in the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116–283). As we work with the House to pass a final USICA bill into law and as the Administration begins planning for implementation of the semiconductor programs, I want to highlight for you the central role New York can play in quickly expanding domestic chip production and enhancing the nation’s R&D leadership. In particular, New York is perfectly positioned as a model for the National Semiconductor Technology Center (NSTC) and National Advanced Packaging Manufacturing Program (NAPMP), and I would invite you and your team back to New York to see first-hand New York’s premier assets for the nation’s competitiveness in the semiconductor industry.

Decades of private and public investment has positioned New York as a leader in the semiconductor industry. New York is currently home to 88 semiconductor companies that employ over 34,000 New Yorkers, including global industry leaders like GlobalFoundries, Wolfspeed, onsemi, and IBM. New York is primed to support an expansion of domestic chip production, as you saw first-hand in your participation in GlobalFoundries’ announcement last year of their plans to build a second fab in the Albany region. The state also offers several shovel ready sites: White Pine in Central New York, Marcy Nanocenter in the Mohawk Valley, and STAMP in Western New York. These sites all offer low-cost, reliable water and power infrastructure and access to a world-class workforce.

Additionally, New York is home to the multibillion-dollar Albany Nanotech Complex, affiliated with the State University of New York (SUNY). Albany Nanotech is the most “shovel-ready” R&D site in North America, comprising the most advanced, publicly-owned, 300-millimeter semiconductor R&D facility. Albany Nanotech is led by NY CREATES, which serves as a resource for public-private and academic partnerships not only across the state but also the world. The Albany facility also specializes in commercialization projects, enabling access to semiconductor design and prototyping for startups, smaller businesses, and universities, as well as helping to attract investment for entrepreneurs. In fact, Albany Nanotech is already set up to help startups and the broader ecosystem and can help create hundreds of new U.S. semiconductor companies as the NSTC. This capability allows Albany Nanotech to uniquely fulfill a necessary goal of the NSTC of serving the needs of the entire domestic semiconductor ecosystem, and not just larger companies.

Furthermore, Albany Nanotech is well positioned to develop the nation’s semiconductor workforce with strong university partnerships across the SUNY system and with top engineering schools like Rensselaer Polytechnic InstituteCornell, Clarkson, Columbia, and Rochester Institute of Technology. Albany Nanotech also has developed partnerships with premier universities outside of New York like the Massachusetts Institute of Technology, Yale University, and University of Arizona and is focused on working with community colleges and Historically Black Colleges and Universities (HBCUs) to prioritize the development of a diverse workforce for the industry. Additionally, late last year, SUNY Polytechnic Institute announced that they have developed with a collaboration of companies a Career Alignment Platform initiative, which is partially funded by $1.25 million from the Department of Commerce’s Economic Development Administration, to provide students and existing workers with training and career pathway support through the Albany Nanotech Complex to access jobs in the semiconductor industry.

From a technical perspective, Albany Nanotech works with several industry leaders and end-users, with a focus on logic and packaging capabilities, among many others. These industry partners include IBM, Applied Materials, onsemi, Saab, Lockheed-Martin, Tokyo Electron Ltd., and Wolfspeed. New York is also home to the federally-funded AIM Photonics Manufacturing USA institute, a cutting-edge packaging R&D program, which combined with Danfoss’s power electronics packaging facility in Marcy, NY, among other assets, positions the state to achieve meaningful and quick outcomes for the NAPMP.

In preparation to compete for the NSTC and NAPMP, I am pleased to share that Albany Nanotech has already started to build a national coalition of over 30 partners across industry and academia. Establishing Albany Nanotech as the central hub for NSTC and NAPMP would allow the Federal government to leverage billions of dollars in other public and private investment that has stood up cutting-edge R&D infrastructure and partnerships that will ensure in a matter of months that real results can be achieved by the NSTC and NAPMP for companies of all sizes and the broader domestic semiconductor industry. Time is of the essence for our nation’s competitiveness, and Albany Nanotech is uniquely suited to drive the rapid progress America needs.

I appreciate all of your partnership to date on passing USICA into law and look forward to continuing to work with you on implementation of these critical programs, including investment in New York to advance the nation’s competitiveness. I also am very appreciative that you took time during your Albany visit last year to meet with Albany Nanotech stakeholders to begin to learn about the unique, highly effective public-private model they offer for NSTC and the NAPMP. I invite you and your team to join me in now touring the Albany Nanotech Complex so you can see the facility, as well as be briefed on Albany Nanotech’s newly formed coalition of national partners brought together to prepare for implementation of the NSTC and NAPMP. Thank you for your attention to this urgent matter.

Sincerely,

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