Texas Continues to Lead in Fortifying America’s Semiconductor Supply Chain
In the past week alone, Governor Greg Abbott has announced two major grant awards through the Texas Semiconductor Innovation Fund (TSIF), further extending Texas’ leadership in fortifying America’s semiconductor supply chain that is more critical than ever to our economic and national security.
Last week, Round Rock-based Tekscend Photomask received a $15.2 million TSIF grant award to help expand the company’s manufacturing capacity for essential components in semiconductor production, creating 50 high-skilled jobs and supporting more than $223 million in new capital investment. This week, Governor Abbott announced another $12 million TSIF grant to Texas Tech University for a new nanotechnology laboratory cleanroom facility in Lubbock’s Semiconductor Nanofabrication Center, advancing critical semiconductor research and workforce development opportunities to help Texas meet the needs of this ever-growing industry.
The TSIF, established through the Texas CHIPS Act in 2023 and administered by the Governor’s Texas CHIPS Office, has become a centerpiece of this leadership. To date, the Office has announced TSIF grants for 17 different projects creating more than 700 jobs and representing nearly $6 billion in capital investment that directly benefits nearly every single industry in our state – from consumer electronics to health care devices, automobile manufacturing, energy, and defense.
Governor Abbott rightly pointed out that “Texas is where the integrated circuit began and where the future of the semiconductor industry is being built.”
While Texas’ long legacy of producing revolutionary microchips goes back to Texas Instruments (TI) in 1958, our state’s game-changing policy leadership in re-orienting the global semiconductor supply chain back toward the U.S. has only just begun.
TSIF-supported projects span cutting-edge semiconductor manufacturing facilities, research and development hubs, critical supply chain components, and workforce development programs – all of which are essential in maintaining our state’s dominance in semiconductor production.
Policy decisions that support semiconductor expansion must extend beyond infrastructure and capital investment to develop the workforce required to operate and scale these facilities. For that reason, the Texas Association of Business (TAB) continues to advocate for policies that protect and expand advanced manufacturing in Texas while ensuring research, development, and workforce pipelines keep pace with rapid innovation.
TAB has prioritized work across the state, in partnership with local chambers and community colleges, to identify gaps in technical and applied training, align education and workforce programs with industry demand, and advance policies that prepare Texans for high-paying, career-advancing jobs that support the long-term growth of the semiconductor and high technology manufacturing ecosystem.
As the top state for semiconductor exports for more than 14 years, Texas has raised the bar for other states to support the nationwide effort to strengthen our domestic chip manufacturing capacity. This forward-thinking approach ensures Texas will continue to have an interconnected ecosystem for semiconductor production that maintains and enhances the competitive edge of our state and every business that calls it home.
– Megan Mauro, Interim President & CEO, Texas Association of Business
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