New York Governor Kathy Hochul has launched a competitive solicitation offering up to $25 million in capital grants to establish a semiconductor design center in Downstate New York, expanding the state’s push to build a broader chip ecosystem spanning design, research and manufacturing.
The initiative delivers on Hochul’s 2026 State of the State proposal and is intended to strengthen New York’s position in semiconductor chip design, a segment that develops the digital blueprints for advanced processors and other chips before they are manufactured.
The proposed Downstate Chip Design Center is expected to connect the region’s technology workforce, universities, research institutions, startup community and venture capital network with New York’s growing semiconductor manufacturing base.
“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,” Hochul said.
She said the $25 million program would use Downstate’s technology and research capabilities to establish New York as a global center for chip design while supporting jobs and investment across the semiconductor supply chain.
$124 Billion in Semiconductor Commitments
The new program builds on more than $124 billion in semiconductor manufacturing and innovation investments committed across Upstate New York since 2022, according to the state.
New York is seeking to connect those manufacturing capabilities with Downstate expertise in chip architecture and design. The state cited projections that global semiconductor revenue could reach $1 trillion by the end of 2026, while private-sector commitments in chip design could reach $500 billion over the next decade.
Chip design companies typically use electronic design automation software to develop the architectures and layouts for advanced chips rather than manufacturing the silicon themselves.
Downstate New York has several of the assets required to support that activity, including major universities, technology companies, venture capital funding and a large engineering and technology workforce.
Center to Support Startups and Chip Designers
The proposed center would complement New York’s existing semiconductor manufacturing infrastructure by focusing on the front end of the chip development process.
According to the state, the facility would incubate semiconductor startups, train chip designers and connect emerging companies with the broader New York semiconductor ecosystem. That could create a link between early-stage design companies and the state’s established research and manufacturing capabilities.
Empire State Development President, CEO and Commissioner Hope Knight said the initiative would expand New York’s semiconductor ecosystem into New York City and the wider Downstate region.
“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,” Knight said, the center would strengthen the state’s semiconductor supply chain from design through manufacturing.
The initiative reflects a broader U.S. effort to strengthen domestic semiconductor capabilities by building capacity across multiple stages of the chip supply chain rather than focusing solely on fabrication.
Applications Open Across Downstate Region
Eligible applicants include nonprofit organizations, academic and research institutions, and multi-entity consortia led by an eligible nonprofit fiscal agent.
The proposed center must be located in New York City, Long Island, or one of five Hudson Valley counties: Westchester, Rockland, Orange, Dutchess or Putnam.
The state will use a two-phase application process. Phase 1 Concept Papers are due October 26, 2026, by 2 p.m.
The program gives Downstate New York a dedicated role in the state’s semiconductor strategy as chipmakers and technology companies expand investments in advanced computing, artificial intelligence and other semiconductor-intensive applications.
