BUFFALO, N.Y. -- The federal government has already designated the I-90 corridor between Buffalo, Rochester and Syracuse as the country's only federal tech hub for the semiconductor industry.

Invest Buffalo Niagara President & CEO Tom Kucharski, who helped the regions apply for the designation, said it's been an effective point of distinction as his and other economic development organizations pitch to site selectors and companies.

"Because these projects are so big and they're so expensive and as the technology continues to grow and innovation, they're going to get bigger and bigger and cost more and more money, you've got to be working very closely with your federal government and your state government," he said.

Kucharski said having shovel ready sites with updated electrical infrastructure is imperative to attracting companies. During her State of the State address Tuesday, Gov. Kathy Hochul said that strategy worked in bringing in Micron, the lynchpin of the upstate tech hub, and her administration is committed to more of the same.

"Microchip fabs, data center and the supercomputers that power AI, they all need tremendous amounts of energy and to support these industries we've already started developing additional strategies," Hochul said.

The governor did not directly mention it in her speech but a proposal to create a new semiconductor supply chain tier of the state's Excelsior Tax Credit program was part of her entire State of the State release. It would offer companies 7% in credits to meet job goals and 3% toward investment.

"It's easy to use," Kucharski said. "The site selectors who are advising them have already used with other companies. They have familiarity with it. It allows them to plug it into their models and create the index for how competitive we are and so it's a smart decision to extend a program that is already working."

Kucharski said the proposed state credits would complement federal programs well, like the ONSHORE Act, signed by President Joe Biden last week, which provides grants to build on shovel-ready legacy industrial sites. He said he expects the new administration will continue to support initiatives that bring business to the United States but there needs to be buy-in at all levels.

"I don't know how we could effectively do this without the state's leadership and their commitment and their investment," Kucharski said.