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Kathy Hochul pushing to announce chipmaking plant in Utica, NY — despite AI information middle ban: sources

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Gov. Kathy Hochul is pushing to announce a China-linked pc chip manufacturing facility close to Utica, NY — a determined bid to tout tech-friendly coverage despite her latest, statewide ban on AI information facilities, The Post has discovered.

Sources shut to Hochul say the governor is in “advanced talks” with Solidigm, the US arm of South Korean chip large SK Hynix, and that the agency is scouting websites close to Utica, Oneida County, for a semiconductor manufacturing facility that could create a whole lot of jobs if permitted.

Albany insiders famous that no deal has yet been finalized, describing any potential announcement as “a cynical ploy” for an election-time “photo-op” as the chief of the Empire State faces a shut Nov. 3 election against Republican challenger Bruce Blakeman.

Gov. Kathy Hochul attends a marketing campaign rally in the Bronx on Oct. 18. Tomas E. Gaston for NY Post

In July, Hochul announced the “first statewide moratorium” on AI information facilities – successfully barring building for up to one yr while state lawmakers develop laws. President Trump blasted the ban as a “terrible decision.”

“Hochul can hold the whole project hostage by falsely propping up the win and then handing it over to the feds as a full proposal,” said one supply briefed on the matter. “If they find it does have security problems, the project dies because of Trump and Republicans. If it works out, she keeps the credit.”

The Albany hustle arrives as the Trump administration turns up the warmth on international companies. Washington is urgent international tech corporations to construct on US soil or face brutal taxes.

Commerce Secretary Howard Lutnick not too long ago warned international chipmakers they could face tariffs of up to 100% if they refuse to open American crops.

Building in upstate New York would let SK Hynix slash its reliance on its lone plant in Dalian, China. This would assist the agency dodge stiff US commerce crackdowns while scoring large state subsidies.

Activists and family of staff of South Korean semiconductor firm SK Hynix protest outside the Seoul Southern Branch of the Korea Workers’ Compensation and Welfare Service in Seoul on Oct. 7. AFP via Getty Images

But the deal could hit a large federal roadblock.

SK Hynix has tied constructing the new US manufacturing facility to Washington’s approval of the export of restricted American chipmaking gear to its Dalian facility, Reuters reported Oct. 14.

The South Korean chipmaker desires to set up new instruments in unused area at its Chinese plant. The aim is to enhance manufacturing in China to assist bankroll the new American facility, the information company said.

A Commerce spokesperson declined to remark beyond directing The Post to strict federal guidelines.

Commerce Secretary Howard Lutnick speaks at a marketing campaign rally at the Curtis D. Menard Memorial Sports Center on Oct. 14 in Wasilla, Alaska. AP Photo/Alex Brandon

Last yr, Washington closed a commerce loophole that let foreign-owned factories in China purchase superior American chipmaking gear unless they apply for a carve-out from the present administration.

Trump officers, talking on background, said federal insurance policies drove the chipmaker to select America, not Hochul’s state money.

The upstate undertaking is separate from SK Hynix’s ongoing talks to lease area at Intel’s Ohio plant.

Solidigm refused to deny the Utica plans. An organization spokesman disregarded The Post’s reporting as “speculation” while admitting the tech large is at present weighing its “strategic alternatives.”

New York Gov. Kathy Hochul holds a press convention to focus on an vitality affordability program at 919 third Avenue in Manhattan on Oct. 16. Robert Miller for NY Post

The Post has sought remark from Governor Hochul’s workplace.

Hochul’s staff is dangling wealthy state tax breaks through the Green CHIPS program to seal the deal.

The proposed manufacturing facility, if permitted, would churn out NAND flash reminiscence chips. These are the essential storage drives that energy large AI information facilities and fashionable smartphones.

South Korean leaders are also feeling the squeeze. They need to maintain good tech jobs at house while dodging a large commerce battle with Washington.

Asked about US strain on Korean chipmakers to construct factories in America, President Lee Jae Myung said last month Seoul would search to “protect South Korea’s national interests while respecting the views of companies.”

“It remains a matter of controversy,” he said, with out elaborating.

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