Semiconductors Enhancing Upstate NY and U.S. Leadership

Semiconductor manufacturing and associated supply chain companies across the semiconductor value chain are vital to the region’s economic strength, enabling technologies critical to national growth and global competitiveness, as well as serving as the centerpiece of modern electronics. In the United States, semiconductors account for only 0.3 percent of gross domestic product (GDP), but they are an important production input to 12 percent of GDP.

To bolster U.S. production and innovation in this area, the Buffalo, Rochester, and Syracuse regions recently received a $40 million grant from the US Economic Development Administration to help the region become a globally recognized semiconductor manufacturing hub over the next decade. The New York Semiconductor Manufacturing and Research Technology Innovation Corridor (NY SMART I-Corridor Tech Hub) will be improving the quality and quantity of semiconductor manufacturing and the microchip supply chain ecosystem.

duncan-mooreLuminate advisory board member, Dr. Duncan T. Moore, who served as the Rudolf and Hilda Kingslake Professor in Optical Engineering Science, and Professor of Optics, Biomedical Engineering, and Business Administration at the University of Rochester, gave his impression on the area’s semiconductor potential.

“Our region, with its renowned research and development facilities, universities, and expansive optics, photonics, and imaging supply chain, is set to leverage its integrated photonics expertise. For example, packaging is just one of the critical needs for the semiconductor space,” explained Moore. “I’m not referring to a concept like a box of cereal — I’m talking about packaging on the microscopic level, where pieces are smaller than the diameter of a piece of human hair – typically about one-tenth of the size.

“When you get down to this size,” he added, “it’s a complicated thing to do — it typically requires integrated photonics and it requires innovation along with extremely expensive equipment. The level of education people need to have for doing this is at a higher level. That’s another advantage we have in Rochester, with many of the college and PhD graduates in the optics, photonics, and imaging degrees choosing to stay in our area. By developing more semiconductor capabilities in this area, we also have the ability to provide jobs that will entice more people to stay here as well.”

When asked about the investment appetite for integrated photonics, system integration, and packaging in semiconductor fabrication, Moore had a simple, direct response.

“Years ago, there was little support for small companies focused on this type of technology — or even small tech startups in general. There was no investment available to those who had ideas for solving challenges within our semi supply chain. There was extensive politics around the whole issue. However, in 2005, that all changed,” said Moore.

“Christine Whitman founded the Rochester Angel Network and she revolutionized small investment groups in the region. She recognized that politicians were blocking everything, and she came up with the very bright idea to bring in more capital from outside Rochester to fuel innovation around tech here.”

Today, the Rochester Angel Network continues to invest in early-stage startup companies and provides a forum for entrepreneurs where they can find potential investors.

“I believe we have very smart people in this region and the capacity in optics,” explained Moore. “Why build in Arizona? There is no water there, and semiconductor manufacturing and integrated photonics technologies need plenty of that.”

No singular region currently has the entire supply chain that’s needed for semiconductors, and this is a huge risk to our nation and its security. “I think that we can solve that by getting enough manpower or intellectual capital in the region to develop these assets right here in the U.S.,” said Moore. “The financial capital is already here.”

Moore pointed to the fact that Rochester has more than 70,000 students in the higher education system in the region. This will provide an opportunity for future professionals.

According to Moore, having a startup ecosystem is also a crucial part of our ability to build out the semiconductor tech hub. Not only will startups drive the development of emerging technologies that will need semiconductors and supply chain partners – creating demand and revenue in the region – this ecosystem will provide a strong bridge from Buffalo to Rochester to Syracuse.

Moore firmly believes that our region has the ability to implement chip fabrication from start to finish.

“Senator Schumer explained our region’s potential the best when he said, ‘In a few years, a quarter of all semiconductors made in the United States of America will be made within a few miles of our I-90 corridor.’ This vision is quite possible if we collaborate to elevate our region, the U.S., and the promise of innovation in semiconductors and integrated photonics.”


Duncan T. Moore, PhD, is the Rudolf and Hilda Kingslake Professor of Optical Engineering and professor of biomedical engineering, as well as professor of business administration in the William E. Simon Graduate School of Business Administration, at the University of Rochester. In 2006, he was also appointed director for entrepreneurship at the University, and in 2007, he became the vice provost for entrepreneurship. From 2004 until 2009, he was responsible for the $3.6 million Kauffman grant on entrepreneurship with a $7.2 million matching from the University of Rochester. Prior to this, from 1995 until the end of 1997, he served as dean of Engineering and Applied Sciences at the University of Rochester. He also served as president of the Optical Society of America (OSA), a professional organization with more than 12,000 members throughout the world, in 1996. From January 2001 until the end of 2002, he served as senior science advisor at OSA. Dr. Moore has extensive experience in the academic, research, business, and government arenas of science and technology. He is an expert in gradient-index optics, computer-aided design, and the manufacture of optical systems. In addition, Dr. Moore is the founder and former president of Gradient Lens Corporation of Rochester, New York, the manufacturer of the high-quality, low-cost Hawkeye boroscope.