Texas CHIPS Office
In June 2023, Governor Abbott signed into law HB 5174 (the Texas CHIPS Act) establishing the Texas Semiconductor Innovation Consortium (TSIC) and the Texas Semiconductor Innovation Fund (TSIF). The purpose of the TSIC and TSIF is to leverage Texas’ investments in the semiconductor industry, encourage semiconductor-related companies to expand in the state, further develop the expertise and capacity of Texas institutions of higher education, and maintain the state’s position as the nation’s leader in semiconductor manufacturing.
The Texas CHIPS Office is a newly formed division within the Texas Economic Development & Tourism Office in the Office of the Governor, created to provide support to the TSIC and assist in the administration of the TSIF.
Texas Semiconductor Innovation Consortium (TSIC)
The TSIC serves as an advisory panel to the Governor and the Texas Legislature; is governed by an executive committee charged with developing and executing a comprehensive statewide strategic plan to further the objectives of the TSIC; and is required to prepare and submit a biennial written report to the Governor and the Legislative Budget Board.
The TSIC will leverage the expertise and capacity of institutions of higher education, industry and non-profit stakeholders to develop a comprehensive strategic plan to ensure ongoing semiconductor innovation; sustain Texas' leadership in semiconductor research, design and manufacturing; attract public and private investment in Texas related to semiconductors; identify and expand opportunities for workforce training and development related to semiconductors; and establish a forum for public and private stakeholders across the semiconductor manufacturing industry with Texas to focus on education, research and commercial production.
The TSIC is made up of a designee appointed by the office of the president for 19 academic institutions of higher education across the state. The executive committee governing the TSIC includes three members appointed by the Governor, two members appointed by the Lieutenant Governor, and two members appointed by the Speaker of the House, in addition to the Chancellor of the Texas A&M University System and the Chancellor of the University of Texas System or their designees.
The TSIF may be used to provide grants to state entities, such as institutions of higher education, for semiconductor research, design and manufacturing projects; and for grants to business entities with an established presence within Texas to encourage economic development related to semiconductor manufacturing and design. In June 2023, Texas lawmakers appropriated more than $698 million for this fund.