Companies such as PVS Solutions and Materion Corp. already supply the semiconductor industry from their plants in Buffalo.
But there are a lot more businesses in the Buffalo Niagara region – as well as in Rochester and Syracuse – that could be suitable for the semiconductor supply chain, and might not even be aware of it.
That is where the Supply Chain Activation Network, or SCAN, comes in. It is one of the components of the “tech hub” bid comprising Buffalo, Rochester and Syracuse that was awarded $40 million in federal funding. SCAN is expected to receive about $9 million of the total funding.
The University at Buffalo will manage SCAN on behalf of all three upstate regions, working with partners based in each region. The goal is to help identify opportunities in the semiconductor industry for companies that already operate in those regions. Semiconductors are top of mind as Micron Technology prepares to build a massive chip-making complex near Syracuse, and Intel Corp. develops chip plants near Columbus, Ohio.
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Isotainers, specialized containers for sulfuric acid, are lined up at PVS Solutions in Buffalo. Everyone wants to make semiconductors these days, including upstate’s nascent tech corridor – and firms like PVS Solutions provide the raw materials.
“We aren’t just saying, ‘We’re going to be the place where every company wants to move to,’ ” said Dottie Gallagher, president and CEO of the Buffalo Niagara Partnership. “We’re saying, ‘Let’s look at the companies that are here and build wealth for the people who are here.’ “
SCAN intends to get to work in the fall. Its first task is analyzing the capabilities of manufacturers in the three markets, said Ananth Iyer, dean of the UB School of Management. UB has provided seed funding to jumpstart the process.
“The initial analysis will allow us to prime the pump while we work on learning more,” Iyer said.
UB will research whether companies might be a good fit for the semiconductor industry, by analyzing factors such as what kind of chemicals they buy, and equipment they use for a different purpose. UB will subcontract with the economic development group Invest Buffalo Niagara to reach out to the companies and gauge their interest.
“If they have an interest in doing this pivot, the Manufacturing Extension Partnerships will connect them to all the financial and technical resources they need to activate that,” Gallagher said. Insyte Consulting covers the Buffalo area in the Manufacturing Extension Partnership’s statewide network.
Ananth V. Iyer, dean of the University of Buffalo School of Management. (provided photo)
The same model of outreach to businesses and follow-up support will used in Rochester and Syracuse, through organizations serving those two regions.
SCAN hopes to bring 200 more companies from across the three-region territory into the semiconductor supply chain by 2035, in addition to the 100 or so already participating, Iyer said.
“A lot of this is like a big funnel,” Iyer said. “You’ve got to tell a lot of people, a subset of them will get excited and join.”
Sen. Charles E. Schumer announces $40 million in federal funding for a “semiconductor superhighway” in upstate New York
And Iyer thinks that as the effort takes root, more companies will take notice.
“When people see success and companies growing, other companies will join,” he said.
Joining the supply chain takes different forms. Some companies might not want to make an end-user product for the semiconductor industry, but could still participate through providing testing facilities or their procurement expertise, Iyer said. There could be situations where companies team up to make components.
There is also a push to diversify the semiconductor supply chain, by bringing more women- and minority-owned businesses into the fold. “The entire strategy is built around engaging people who were marginalized from opportunities in the past,” Gallagher said.
Iyer sees opportunities for college students to get involved in SCAN’s work, which could persuade them to stay in the region after they graduate. And bringing more companies into the supply chain will make for a stronger semiconductor industry in the state, he said.
“I think success here is having the reputation where everybody will say, ‘New York is place to go to get cutting-edge semiconductor chips,’ ” Iyer said.
Graham Corp. secures $2.1 million for welder training
Graham Corp., a Batavia-based manufacturer, was awarded a $2.1 million grant to expand its welder training programs and related equipment.
The contract was awarded by BlueForge Alliance, a nonprofit supporting the Navy’s Submarine Industrial Base initiatives.
The funds will be used to increase the company’s production capacity at its Batavia operation, which includes expanding its welding training program and increasing its skilled labor workforce by more than 20%.
“These funds will help us develop and grow our welder workforce and provide additional equipment needed to improve the efficiency of our production processes,” said Daniel Thoren, Graham’s president and CEO.
Moog, Hawaiian Airlines reach 15-year deal
Moog Inc. has announced a 15-year contract with Hawaiian Airlines.
The partnership will provide Hawaiian Airlines with global access to the Moog component pool, on site stock units, as well as repair support from Moog on a range of part numbers fitted to the airline’s 787 fleet, the Elma-based motion control equipment maker said.
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ICYMI
Five reads from Buffalo Next:
1. A financial coaching collaboration between KeyBank and HOPE Inside has helped 392 clients in Buffalo, increase credit scores, expand savings and reduce debt since its founding last year.
2. A year into the legal cannabis market, a lot has changed – and plenty more changes are coming.
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4. Amazon is starting to build a huge distribution facility in Niagara County. It will look a lot like this one in Rochester.
5. A former 43North winner aims to be a cut above the rest.
The Buffalo Next team gives you the big picture on the region’s economic revitalization. Email tips to buffalonext@buffnews.com or reach Buffalo Next Editor David Robinson at 716-849-4435.
Email tips to buffalonext@buffnews.com.
