Texas Semiconductor Leadership

Where the chip was born, the future is already building.

“Texas is the birthplace of the chip that changed the world—and where the future of America’s semiconductor industry is already building. Today, Texas is the top state for semiconductor manufacturing, having led the nation for 14 years in the export of semiconductors and other electronic components. Significant industry investments announced in Texas in the last two years will further accelerate domestic semiconductor manufacturing, reducing reliance on foreign production and supply chains and further ensuring our nation’s security. Texas has the innovation, the infrastructure and the talent to continue to lead the American resurgence in critical semiconductor manufacturing and the technologies of tomorrow.”

— Governor Greg Abbott

Semiconductor Talent and Workforce Strength
Today, more than 51,500 Texans work in the semiconductor industry, and Texas is prepared to meet the industry’s needs for tomorrow. The state’s young, skilled and diverse labor force is growing faster than the nation’s. Much of the state’s high-performing workforce is drawn from Texas’ top-ranked colleges and universities, including 16 Tier One research institutions. And Texas continues to heavily invest in workforce training programs, with more than 4 million Texans participating in workforce system programs and services annually.

Infrastructure Advantages
Reduced supply chain costs and improved logistical efficiency are two of the top advantages of Texas’ central location in North America and proximity to Mexico, along with the state’s robust infrastructure and transportation networks that provide timely access to domestic and global markets via air, land and sea. In fact, Texas has led the nation in exports for 23 years, in semiconductor exports for 14 years in a row and in high-tech exports for 12.

Texas CHIPS Act
In June 2023, Governor Abbott signed into law the Texas CHIPS Act (House Bill 5174) to leverage Texas’ investments in the semiconductor industry, encourage semiconductor-related companies to expand in the state, further develop the expertise and capacity at Texas higher education institutions and maintain the state’s position as the nation’s leader in semiconductor manufacturing. The Texas CHIPS Act establishes the Texas Semiconductor Innovation Consortium (TSIC) and the Texas Semiconductor Innovation Fund (TSIF).

Texas CHIPS Office
The TSIC and TSIF is administered by the Texas CHIPS Office, a division within the Texas Economic Development & Tourism Office (EDT) in the Office of the Governor (OOG). EDT and OOG will provide the necessary resources to assist the TSIC in performing its duties. The CHIPS Office also prepares and submits a biennial written report to the Governor and the Legislative Budget Board.

Governor’s National Semiconductor Centers Texas Task Force
Governor Greg Abbott announced the formation of the National Semiconductor Centers Texas Task Force in October 2021. Members of the task force include local and regional economic development organizations, higher education and industry leaders across the state. The task force was created to:

coordinate the development of a proposal to the U.S. Department of Commerce with the intention of making the Lone Star State the future site of the National Semiconductor Technology Center and the National Advanced Packaging Manufacturing Program; and
bring together semiconductor industry stakeholders from the private sector, community partners and higher education institutions to collaborate.

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