Gov. Kathy Hochul is pushing to announce a China-linked computer chip factory near Utica, NY — a desperate bid to tout tech-friendly policy despite her recent, statewide ban on AI data centers, The Post has learned.
Sources close to Hochul say the governor is in “advanced talks” with Solidigm, the US arm of South Korean chip giant SK Hynix, and that the firm is scouting sites near Utica, Oneida County, for a semiconductor manufacturing facility that could create hundreds of jobs if approved.
Albany insiders noted that no deal has yet been finalized, describing any prospective announcement as “a cynical ploy” for an election-time “photo-op” as the leader of the Empire State faces a close Nov. 3 election against Republican challenger Bruce Blakeman.
In July, Hochul announced the “first statewide moratorium” on AI data centers – effectively barring construction for up to one year while state lawmakers develop regulations. 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 source 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 heat on foreign businesses. Washington is pressing foreign tech firms to build on US soil or face brutal taxes.
Commerce Secretary Howard Lutnick recently warned foreign chipmakers they could face tariffs of up to 100% if they refuse to open American plants.
Building in upstate New York would let SK Hynix slash its reliance on its lone plant in Dalian, China. This would help the firm dodge stiff US trade crackdowns while scoring massive state subsidies.
But the deal could hit a massive federal roadblock.
SK Hynix has tied building the new US factory to Washington’s approval of the export of restricted American chipmaking equipment to its Dalian facility, Reuters reported Oct. 14.
The South Korean chipmaker wants to install new tools in unused space at its Chinese plant. The goal is to boost production in China to help bankroll the new American facility, the news agency said.
A Commerce spokesperson declined to comment beyond directing The Post to strict federal rules.
Last year, Washington closed a trade loophole that let foreign-owned factories in China buy advanced American chipmaking gear unless they apply for a carve-out from the current administration.
Trump officials, speaking on background, said federal policies drove the chipmaker to choose America, not Hochul’s state cash.
The upstate project is separate from SK Hynix’s ongoing talks to lease space at Intel’s Ohio plant.
Solidigm refused to deny the Utica plans. A company spokesman brushed off The Post’s reporting as “speculation” while admitting the tech giant is currently weighing its “strategic alternatives.”
The Post has sought comment from Governor Hochul’s office.
Hochul’s team is dangling rich state tax breaks through the Green CHIPS program to seal the deal.
The proposed factory, if approved, would churn out NAND flash memory chips. These are the crucial storage drives that power massive AI data centers and modern smartphones.
South Korean leaders are also feeling the squeeze. They want to keep good tech jobs at home while dodging a massive trade war with Washington.
Asked about US pressure on Korean chipmakers to build factories in America, President Lee Jae Myung said last month Seoul would seek to “protect South Korea’s national interests while respecting the views of companies.”
“It remains a matter of controversy,” he said, without elaborating.