Hochul eyes China-linked chip plant in Utica amid AI data-center ban

Governor Kathy Hochul is pushing a prospective partnership with Solidigm, the U.S. subsidiary of South Korean chip giant SK Hynix, to site a semiconductor manufacturing plant near Utica, New York. Sources say negotiations are advanced but no agreement has been reached, and critics label the timing as a political stunt ahead of her November 3 contest with Republican Bruce Blakeman. The project, which could generate hundreds of jobs, aligns with federal efforts to compel foreign chip firms to invest domestically, offering subsidies through New York’s Green CHIPS program.

Hochul’s push follows her July imposition of a statewide moratorium on AI data-center construction, a move that drew criticism from Donald Trump. The venture also ties into broader U.S. trade tensions, as SK Hynix seeks approval to export restricted equipment to its Chinese plant in Dalian, a condition that could affect the U.S. plant’s viability. Solidigm has not confirmed the plans, describing them as “strategic alternatives,” while a Commerce Department spokesperson declined comment beyond standard regulations.