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 13 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

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.

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 will be administered by the Texas CHIPS Office, a newly formed 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.

Texas Semiconductor Innovation Consortium (TSIC)
The TSIC will serve as an advisory panel to the Governor and the Texas Legislature; will be governed by an executive committee charged with developing and executing a comprehensive statewide strategic plan to further the objectives of the TSIC; and will be 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 each of the Lieutenant Governor and 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 formation of TSIC is underway and our office will continue to provide updates as details are available.

Texas Semiconductor Innovation Fund (TSIF)
The TSIF may be used to match funding 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 the state of Texas to encourage economic development related to semiconductor manufacturing and design. In June 2023, Texas lawmakers appropriated $698 million for the new semiconductor fund. In addition, the Legislature appropriated more than $660 million for the creation of advanced research and development centers at The University of Texas at Austin and Texas A&M University. Our office will continue to provide updates on TSIF as details are available.

Semiconductor Talent and Workforce Strength
Today, more than 43,000 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, now more than 15 million strong, 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 11 Tier One research institutions. And Texas continues to heavily invest in workforce training programs, with an average of 4.4 million Texans participating in workforce system programs and services annually. The state is also moving to performance-based funding for community colleges with the signing of House Bill 8 in the 88th Legislative Session and is making historic investments in higher education to ensure the state continues to deliver the innovative thinkers and workforce of tomorrow.

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 22 years, in semiconductor exports for 13 years in a row and in high-tech exports for 11. In August 2023, Governor Abbott announced a record $142 billion in total investment to further improve roadways and the connectivity of Texas' transportation infrastructure. In addition, legislation passed in 2023 allocates $1 billion, pending voter approval, to low-interest loans for water supply and infrastructure expansion projects across the state.

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