New York's Big Bet on Tech Has Fallen Flat, Leaving Governor Hochul with a Sour Re-election Stakes.
In 2022, New York Governor Kathy Hochul and Micron Technology CEO Sanjay Mehrotra announced a $100 billion investment in four computer chip plants across Central New York, promising to create over 40,000 jobs. However, the state's latest move on the project has left many wondering if the deal was worth it.
In November, Micron delayed its plans for opening the upstate chip factory by five years and instead announced that it would use federal funding from the CHIPS Act to rush construction of a new plant in Idaho, its home state. The new facility will not only benefit Idaho but also mark a significant shift away from New York's bid.
The proposed mega-complex was hailed as a historic investment in 2022, with Hochul touting it as a way to revitalize the state and attract businesses. However, it appears that promise remains unfulfilled. The delay has pushed back any potential timeline for the project, now putting the earliest completion date at 2030.
To sweeten the deal, Hochul offered Micron $5.5 billion in subsidies, with significant exemptions from sales and use taxes on construction materials, as well as discounted electricity once the plants were operational. The Onondaga County Industrial Development Agency also agreed to a 49-year property tax break valued at $284 million.
Despite these incentives, it seems that billions of dollars in federal-state-local funding have not been enough to secure a top-tier semiconductor manufacturer like Micron to build its plant in New York. The project's failure serves as a stark reminder of the state's challenging business climate, which includes high taxes, soaring energy costs, and increasingly hostile regulations.
The botched deal has also cast doubt on Hochul's ability to steer the state forward. If she can't attract big-name companies like Micron, it raises questions about her leadership capabilities, especially as re-election looms in 2026.
In 2022, New York Governor Kathy Hochul and Micron Technology CEO Sanjay Mehrotra announced a $100 billion investment in four computer chip plants across Central New York, promising to create over 40,000 jobs. However, the state's latest move on the project has left many wondering if the deal was worth it.
In November, Micron delayed its plans for opening the upstate chip factory by five years and instead announced that it would use federal funding from the CHIPS Act to rush construction of a new plant in Idaho, its home state. The new facility will not only benefit Idaho but also mark a significant shift away from New York's bid.
The proposed mega-complex was hailed as a historic investment in 2022, with Hochul touting it as a way to revitalize the state and attract businesses. However, it appears that promise remains unfulfilled. The delay has pushed back any potential timeline for the project, now putting the earliest completion date at 2030.
To sweeten the deal, Hochul offered Micron $5.5 billion in subsidies, with significant exemptions from sales and use taxes on construction materials, as well as discounted electricity once the plants were operational. The Onondaga County Industrial Development Agency also agreed to a 49-year property tax break valued at $284 million.
Despite these incentives, it seems that billions of dollars in federal-state-local funding have not been enough to secure a top-tier semiconductor manufacturer like Micron to build its plant in New York. The project's failure serves as a stark reminder of the state's challenging business climate, which includes high taxes, soaring energy costs, and increasingly hostile regulations.
The botched deal has also cast doubt on Hochul's ability to steer the state forward. If she can't attract big-name companies like Micron, it raises questions about her leadership capabilities, especially as re-election looms in 2026.
New York thought they were gonna win the tech game with that massive chip plant deal and now it's like, total bust 
. I mean, where did all that $5.5 billion go? 
And those 40,000 jobs? Good luck finding 'em in 2030 
. It's all about who you know, right? 
Idaho gets the plant and all the perks, while New York is left with a big fat zero 
. I don't think this bodes well for Hochul's re-election chances at all 
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I think its a shame that New Yorks Big Bet on Tech didnt quite pay off. The amount of cash and incentives that Hochul offered was massive 
. I mean, who wants to deal with all that red tape? 
Still, I think Hochul should learn from this and try again in the future... maybe with some tweaks to the biz climate 
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. But it seems like it just wasn't enough to seal the deal.
. It's a huge state with so much potential, but sometimes it feels like they're holding themselves back by being too slow to adapt 
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. I mean, if she can't even bring in big-name companies like Micron... that doesn't exactly fill me with confidence 
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it sounds like the state gave away too much money upfront without making sure they had the skills to support such big businesses. plus, who thought 49-year property tax breaks were a good idea? that's crazy talk 
. now Hochul's got some serious explaining to do before her re-election campaign takes off...
. Hochul should be praised for her ambitious vision and willingness to take risks 
. The project may not have gone as planned, but it's clear that the state is still committed to creating jobs and stimulating growth 
. It's too early to say if re-election is at stake - let's give Hochul a chance to regroup and adjust her strategy 
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. They were supposed to create over 40k jobs and now we're lucky if we get half that. It's all just a huge waste of money 
They must've thought we'd be rolling in cash like the Cayman Islands or something 
. And what really gets my goat is that Hochul's trying to spin this as some kind of failure on her part, but it's not all her fault 
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I'm not surprised by this outcome, New York's been trying to lure big tech companies in for ages and so far, no luck 
. Now Hochul's gotta answer to her voters and re-election is looking pretty uncertain 
. Maybe the state should take a step back, assess what they can offer and not overpromise 
they really thought they could pull off that big tech deal and now it's all falling apart 
and Hochul's left with a major egg on her face 
500 million in subsidies and tax breaks didn't seem to do the trick 
. But it looks like those treats just weren't enough. The fact that Micron is gonna build their plant in Idaho instead is pretty telling - it shows that the deal wasn't as attractive as they thought 
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. If Hochul can't attract big-name companies like Micron, does that mean she's just not cut out for the job? Is this just another example of how the business world sees politics as a game to be won or lost, rather than a way to make a real difference in people's lives? 
That's some serious cash, but if it's not gonna happen in NY, what's the point? 
. Now it seems like Governor Hochul's re-election chances are kinda... Well let's just say they're not looking great 
Still, I think Hochul should take this as an opportunity to regroup and revisit the deal 