Last month, we were proud to join local, state, and federal officials in welcoming Samsung’s $44 billion investment in semiconductor manufacturing and advanced packaging in Taylor, Texas. In announcing a $6.4 billion incentive from the U.S. Department of Commerce made possible through the CHIPS and Science Act of 2022, Commerce Secretary Gina Raimondo made clear that Texas is key to our nation’s effort to rebuild its semiconductor ecosystem, noting that “one of our biggest, best, most innovative clusters will be led right here in Central Texas.”
Samsung’s most recent capital infusion is expected to generate more than 17,000 construction jobs and over 4,500 manufacturing jobs. These well-paying positions will boost the local and state economies and contribute a surplus of revenue for local governments. With more than 45,000 employees who work in the semiconductor manufacturing industry, Texas is poised to surpass California in the number of microchip jobs by 2030, by which point semiconductor production is expected to become a trillion dollar industry world-wide.
Strengthening our semiconductor production edge is critical for the U.S. to remain the world’s number one military and economic power. Texas is poised to continue leading in semiconductors, which impact every sector of the economy, and are more critical than ever now in the age of AI.
With Samsung’s most recent investment of $18 billion in Texas and its intent to invest a total of $63 billion, we are witnessing one of the most significant economic development projects in Texas history. Upon full build out, it will represent one of the largest investments in U.S. history. This is not just an investment, but a glimpse into future economic prosperity, a testament to the promise of our state’s technology industry.
TAB’s recent economic impact study shows that the technology industry contributes more than $469 billion to the Texas economy – around 20% of the state’s annual GDP. The Lone Star State continues to solidify its position as the nation’s innovation hub, with technology serving as a consistent catalyst for economic prosperity.
But our leadership isn’t limited to manufacturing alone. Through the passage of the Texas CHIPS Act last year, Texas also devoted more than $666 million to establish advanced microelectronics research and development centers at the University of Texas at Austin and Texas A&M University – ensuring Texas can remain at the cutting edge of technological innovation.
TAB is grateful for Texas leaders in Washington and Austin alike recognizing the strategic importance of investment in semiconductor production, including Sen. John Cornyn, U.S. House Foreign Affairs Chairman Michael McCaul, U.S. House Appropriations Chair Kay Granger, Congressman Lloyd Doggett, Governor Greg Abbott, Senate Finance Committee Chair Joan Huffman, and House Appropriations Committee Chairman Greg Bonnen. We also applaud the A+ economic development team in Governor Abbott’s office, quarterbacked by Adriana Cruz, who has been instrumental in strengthening Texas’ leadership in attracting advanced manufacturing projects, including chip manufacturing.
Samsung’s latest investment is a testament not only to the continued strength of the Texas economic landscape, but also to our leadership in bringing supply chains closer to home to enhance our national security. Projects that focus on edge technology, packaging, process fabrication, and more are not only massive economic multipliers, but are forging our planet’s economic future.
Establishing the local infrastructure for these investments did not happen overnight – decades of public-private partnership investments, research and development, and smart public policy and tax incentives paved the way for Texas to serve as the ideal location for new advanced manufacturing projects.
Drawing on valuable lessons learned from supply chain issues we experienced during the pandemic, Texas has stepped up to embrace a new vision for semiconductor production that will pay dividends for our continued prosperity and economic growth for generations to come.
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