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Texas Chamber Business News: New TSIF Grant Marks Significant Progress for Texas Semiconductor Industry
Texas Chamber Business News
November 19, 2024
New TSIF Grant Marks Significant Progress for Texas Semiconductor Industry
Texas has long been a hub for innovation and opportunity. From a robust energy sector to thriving tech ecosystems in Austin and Dallas, the Lone Star State consistently positions itself at the forefront of emerging industries, cementing its role as a leader in technology and research. This legacy continues with Governor Greg Abbott’s recent announcement of a Texas Semiconductor Innovation Fund (TSIF) grant awarded to Intelligent Epitaxy Technology, Inc. (IntelliEPI) for semiconductor production in Allen, Texas. The move underscores Texas’ pivotal role in advancing semiconductor research and manufacturing.
Texas ranks as the nation’s top state for semiconductor manufacturing, fostering strategic partnerships and investment in local talent and resources. With 11 Tier 1 research institutions and strong support from the Texas business community, the state is poised to advance groundbreaking research, cultivate startups, and bolster nearshoring efforts to enhance global competitiveness.
Governor Abbott highlighted the economic impact of the TSIF grant:
“I congratulate IntelliEPI on this $41 million investment in a new wafer production facility in Texas, nearly tripling their annual wafer production and contributing millions to the Texas economy. Thanks to companies like IntelliEPI, Texas will continue to lead the nation in critical semiconductor manufacturing capacity while developing the technologies of tomorrow.”
IntelliEPI, the only domestic producer of epitaxy-based compound wafers used in telecommunications, photonics, and other advanced technologies, aims to modernize Texas’ semiconductor landscape. CEO Dr. Yung-Chung Kao emphasized the grant’s importance:
“The funding will not only expand our production facilities but also solidify Texas’ position as a key hub for compound wafer manufacturing, which is essential for America’s national and economic security.”
The announcement follows the passage of the Texas CHIPS Act, which created the Texas Semiconductor Innovation Consortium (TSIC) to foster collaboration among industry leaders, academia, and policymakers, as well as the TSIF to provide financial support for semiconductor companies and research.
Governor Abbott stressed the significance of these efforts:
“Texas is the birthplace of the chip that changed the world. Significant industry investments announced in Texas over the past two years will further accelerate domestic semiconductor manufacturing, reduce reliance on foreign production, and strengthen our national security.”
Recent investments from major players like Samsung further demonstrate the industry’s momentum. Samsung’s $44 billion commitment includes $6.4 billion from the U.S. Commerce Department, authorized under the federal CHIPS Act. This funding reflects its broader mission to secure resilient supply chains and promote capital-intensive investments in Texas. These efforts are projected to generate tens of thousands of construction and manufacturing jobs, boosting the state’s economy.
By advancing domestic semiconductor production, Texas is ensuring that American markets remain competitive in a sector critical to modern life. From smartphones to advanced medical devices, semiconductors power nearly every facet of daily existence. Strengthening this supply chain is essential not only for economic growth but also for national security.
With continued investments from both the federal CHIPS Act and the TSIF, Texas is securing its place as a global leader in the semiconductor industry, driving technological innovation and economic prosperity.
We hope you enjoyed today’s read!
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