Texas is at the forefront of the semiconductor industry, with the state leading the nation in exports of semiconductor chips. The industry is currently experiencing a boom, with new facilities and investments announced in recent months.

Texas Semiconductor Industry Boom

The boom is attributed to federal investment and the flurry of data centers being built in Texas and across the country. New or expanded semiconductor fabrication plants, or “fabs,” have begun operating or been announced in the Lone Star State, including the launch of Texas Instruments’ $40 billion semiconductor facility in Sherman.

The Texas CHIPS Act, passed in 2023, has also played a significant role in the industry’s growth. The law provides incentives for new semiconductor manufacturing in Texas, as well as research and workforce development at the state’s universities. The University of Texas at Austin received $440 million for its own research and development center, while Texas A&M University received funding for the Semiconductor Institute.

Industry Growth and National Security

The rapid growth of the industry is considered essential for U.S. national security, as the nation relies heavily on foreign semiconductor manufacturing for the chips that power everyday electronics. The federal CHIPS and Science Act, signed by President Joe Biden, allocated $52 billion to spur semiconductor manufacturing in the U.S.

Texas is well-positioned to capitalize on the industry’s growth, with its robust ecosystem of chip manufacturing and research. The state’s universities are working with semiconductor companies to develop new products and train the future technicians, engineers, and leaders of the industry.

Original reporting: Texas Tribune (HLL/CB) — read the source article.