NY State Issues Request for Applications for New Downstate Chip Design Center
Full proposals for the Downstate Chip Design Center are due on Jan. 11, 2027. The state is seeking applications for properties in the downstate region, including Orange County.
ALBANY—New York State officials announced earlier this month the launch of a competitive Request for Applications (RFA) that offers 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. The proposed facility must be located in the Hudson Valley counties of Orange. Westchester, Rockland, Dutchess and Putnam, in New York City or on Long Island.
“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,” Gov. Kathy 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.”
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. Phase 1 Concept Papers are due Oct. 26, 2026 by 2:00 p.m. According to the RFA, full proposals are due on Jan. 11, 2027, the anticipated selection of a proposal is projected for February 2027 and the anticipated contract start date is July 2027.
According to the RFA, the applicant could involve multiple partners and the project could be new construction or the expansion or modification of an existing structure.
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, state officials said.
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.
