Micron breaks ground on massive chipmaking plant that could transform Central NY


Clay, N.Y. — At the edge of a 1,400-acre tract of swamp, forest and former farmland just north of Syracuse, Micron Technology and public officials across the political spectrum broke ground this morning on what’s being called the largest private development in New York state history.

For Micron, riding a wave of record profits and bolstered by $25 billion in taxpayer subsidies, it marked the first ceremonial step to building its largest memory chip plant.

The groundbreaking comes more than three years after Micron announced it had chosen Central New York for its biggest expansion ever in the United States. Nearly all of the company’s chips are made in Asia.

Upstate New York’s legendary winters didn’t disappoint: Wind chills dipped to about 10 degrees Friday morning and the ground was covered with at least half a foot of fresh lake effect snow blown in from Lake Ontario, where Micron will draw its water.

“That is a perfect day,” Micron CEO Sanjay Mehrotra said of the fresh snow and sun that broke through before the ceremony began. He thanked the Democratic and Republican officials in the audience who both recruited Micron to Upstate New York and helped pass the federal legislation that paved the way for onshoring more computer chipmaking in the nation.

“It shows that when it comes to restoring American manufacturing,” he said, “we are clearly one team.”

Micron Technology groundbreakingMicron Technology breaks ground on a $100 billion computer chipmaking complex in Clay, New York, on Jan. 16, 2026. Pictured from left are: Sen. Kirsten Gillibrand, Sen. Charles Schumer, Gov. Kathy Hochul, Micron CEO Sanjay Mehrotra and U.S. Commerce Secretary Howard Lutnick.N. Scott Trimble | strimble@syracuse.com

Micron says it plans to build four chipmaking factories in Clay by 2041 to churn out billions of tiny computer chips used in cars, cell phones, appliances and, increasingly, data centers and artificial intelligence.

“The site will soon hum with activity,” Mehrotra said. “It will become a thriving technology hub, generating tens of thousands of jobs here, transforming the region.”

Shortly before noon, Mehrotra joined with Gov. Kathy Hochul, Sens. Charles Schumer and Kirsten Gillibrand, U.S. Commerce Secretary Howard Lutnick and County Executive Ryan McMahon for the ceremonial dirt-tossing with silver shovels.

They did it four times for the cameras, then an excavator behind them dumped a load of dirt into a dump truck with a Micron icon on its side. It was 12 degrees. Schumer wore a Buffalo Bills hat and an orange Syracuse tie.

Before the outdoor festivities, Lutnick, whose department will oversee the disbursal of about $20 billion in taxpayer subsidies to Micron over the next decade or so, took the stage and injected politics into a heated tent set up on the former farmland in northern Onondaga County.

“It is great to be in Central New York,” Lutnick said, “which, of course, you all know, is the heart of Trump country.” The applause afterward was tepid.

“It’s a historic day today,” Lutnick continued. “Because this fab, mega fab, is going to be the largest investment in the history, the largest single investment in the history of the great state of New York. So imagine that being right here, rebuilding and growing in the heart of Syracuse. That’s fantastic.”

Micron Technology groundbreakingU.S. Commerce Secretary Howard Lutnick at the Micron groundbreaking on Jan. 16, 2026.N. Scott Trimble | strimble@syracuse.com

Schumer, a Democrat and the Senate’s former majority leader, thanked McMahon, a Republican, for his partnership in working to get Micron to move to the Syracuse area.

“I want to give him some thanks, because he really helped prepare this site,” said Schumer, who ushered through the CHIPS and Science Act in 2022 that gave Micron the impetus to build factories in the United States.

“We will look back generations,” Schumer added. “This was a turning point for Central New York, for Upstate New York, and for the United States of America, because, because what’s happening here is going to give the United States the lead in semiconductor manufacturing for generations.”

Hochul, who went to Syracuse University in the 1970s, noted how at that time manufacturing was fleeing cities in Upstate New York. As she took the microphone, she quipped that this was really Hochul country. The applause was louder than for the secretary’s jab.

Micron’s arrival and its promise of a resurgence of manufacturing in Central New York, Hochul continued, is a dream come true.

“I could not be prouder,” Hochul said. “This is the day we rise up New York.”

The $52 billion, bipartisan CHIPS Act was designed to bring back to the U.S. the manufacture of computer chips essential to modern life and national security. Micron was one of the big winners, securing a grant of more than $6 billion to build factories in New York and at its headquarters in Idaho.

Construction of the first of two fabs in Boise is well underway, with production expected to start next year. Micron announced this year in a new deal with the Trump administration that it would build a second factory in Boise that would open before any of the New York factories.

Late last year, Micron announced that the Clay fabrication plants, or fabs, would be delayed by two to three years. The first is now set to start production in 2030; the second, in 2033.

The moment is about more than today, McMahon said. It’s about helping Micron continue to grow as a memory chip leader, he said. And it’s about making sure Central New Yorkers share in the expected largess.

“This is truly about the American worker and opportunity,” McMahon said. “But the reality is, this is about the national security of this country first and foremost. And by this investment here today, America will lead the world in AI dominance, and that means the world will literally be a safer and better place.”

Micron Technology groundbreakingMicron leaders, local and state officials and community leaders gather at Syracuse University to celebrate the groundbreaking of the chipmaker’s complex in Clay. Gov. Kathy Hochul, Sen. Charles Schumer and Onondaga County Executive listen during SU Chancellor Kent Syverud’s remarks. Jan. 16, 2026N. Scott Trimble | strimble@syracuse.com

Micron says it will spend more than $51 billion to build two fabrication plants, or fabs, by 2033. Taxpayer subsidies from federal, state and local governments would cover about half of those costs.

The company says it could spend another $50 billion to build a third and fourth fab by 2041, although there is no public money allotted for those.

Micron’s project here underwent a two-year, 20,000-page environmental review that was wrapped up in November. Since then, Micron has obtained the wide variety of necessary construction approvals from the federal, state and local governments.

If Micron keeps its promises, the impact on Central New York would be enormous. Micron says it would employ 9,000 people – nearly as many as Upstate Medical University, now the region’s biggest employer.

Up to 40,000 spinoff jobs could be created, from those in semiconductor supply chains to hotels to schools. Construction would require more than 4,000 workers during peak construction periods.

The groundbreaking comes as Micron, founded in the basement of a dentist’s office in Boise in 1978, is soaring on the demand for artificial intelligence chips. Micron has recently posted record sales and profits, and even bailed out of the consumer market to preserve its production for bigger profits in AI. Investors have noticed: Micron’s stock price has tripled in the past year.

Site preparation in Clay is expected to start within days. The first task for Micron’s initial contractor, Gilbane Co., is to start clearing 445 acres of forest. Gilbane will have to hurry: All tree-cutting must halt between March 31 and Nov. 1 because two species of endangered bats use the site to raise their young during the warmer months.

This year, Micron will need to haul in about 2 million yards of gravel-like fill to level and stabilize the site, which contains about 200 acres of wetlands. That will be done mostly by truck, with more than 500 trucks going in and out of the site every day on two-lane roads.

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US warns South Korea and Taiwan of 100% tariffs if they refuse to invest in American manufacturing


Howard Lutnick. Photo: Bloomberg

U.S. Secretary of Commerce Howard Lutnick issued an ultimatum to leading global semiconductor manufacturers. During an event in New York State on Friday, January 16, 2026, he made it clear that access to the American market for Taiwanese and South Korean companies would depend on their willingness to build factories within the United States. This was reported by Bloomberg, writes UNN.

Details

The Trump administration plans to use tax pressure as the main incentive for relocating high-tech facilities. Lutnick emphasized that companies that ignore calls for investment will face a doubling of the cost of their products at the border.

Everyone who wants to create memory has two options: they can pay a 100% tariff or build in America. If they don’t build in America, the tariff will likely be 100%.

– stated Howard Lutnick.

Who is the pressure aimed at?

The warning primarily concerns the market leaders in memory chips and components for artificial intelligence:

  • Samsung Electronics and SK Hynix (South Korea);
  • TSMC and other leading Taiwanese firms.

This statement was made against the backdrop of the groundbreaking ceremony for a giant factory of the American company Micron Technology, which is already investing billions of dollars in the development of domestic production in New York.

New White House strategy

Although President Donald Trump has so far refrained from immediately imposing tariffs on semiconductors, the Department of Commerce is already conducting aggressive negotiations with partners. The administration’s goal is to radically reduce U.S. dependence on imports of critical technologies and restore the dominance of American industry. 

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Taiwan to invest $250 billion in US semiconductor manufacturing


The Trump administration signed a deal worth $250 billion with Taiwan, in a move designed to help the United States boost domestic semiconductor manufacturing. This deal was announced by the U.S. Department of Commerce on Thursday.

Under this deal, Taiwanese semiconductor and tech companies have agreed to make direct investments into the U.S. semiconductor industry. According to a press release, these investments will span across semiconductors, energy, and AI “production and innovation”. Currently, Taiwan produces more than half of the world’s semiconductors.

Taiwan will also supply an additional $250 billion in credit guarantees for additional investments from these semiconductors and tech enterprises, according to the commerce department. The timeline for the investments is unclear.

READ: Biden administration to intensify restrictions on China’s access to AI chips (January 14, 2025)

In return for the investment, the U.S. will invest in Taiwan’s semiconductor, defense, AI, telecommunications, and biotech industries. The amount for this investment was not specified.

This news comes the day after the Trump administration published a proclamation reiterating the country’s goal to bring more semiconductor manufacturing back to the United States.

“This dependence on foreign supply chains is a significant economic and national security risk,” the proclamation stated. “Given the foundational role that semiconductors play in the modern economy and national defense, a disruption of import-reliant supply chains could strain the United States’ industrial and military capabilities.”

The proclamation also announced 25% of tariffs on some advanced AI chips. It also stated that once trade talks with other countries–like this deal with Taiwan–are complete, there would be additional semiconductor tariffs.

In 2025, Trump has made semiconductor manufacturing a central focus of his economic agenda, aiming to reduce U.S. reliance on foreign chip production and bring manufacturing back to American soil.

His administration has proposed aggressive trade measures, including a potential 100% tariff on imported semiconductors. However, companies that commit to building manufacturing capacity in the U.S. could be exempt according to previous reports.

In March last year, Taiwan Semiconductor Manufacturing (TSMC) announced plans to invest $100 billion into bolstering chip manufacturing in the U.S.

READ: The perils of Trump’s proposed tariff trade war (February 6, 2025

Semiconductors are the foundational components of modern technology. They power computing systems in products ranging from smartphones and automobiles to telecommunications equipment and military weapons.

According to a press release from the U.S. Department of Commerce, the U.S. share of global wafer fabrication declined sharply from 37 percent in 1990 to less than 10 percent in 2024. Today, most semiconductors are fabricated in East Asia due to foreign industrial policies.

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