Texas is investing nearly $700 million in taxpayer-funded grants to expand semiconductor manufacturing under the Texas CHIPS Act. The initiative aims to strengthen the state’s position as a leader in the U.S. semiconductor industry.
The first grants were awarded to companies with significant market capitalization. In November 2024, Intelligent Epitaxy Technology, Inc. received $4.12 million to expand its wafer production facility in Allen, committing $41 million in capital investment. In February, Dongjin Semichem Texas secured $2.4 million to produce specialty chemicals in Killeen, reducing reliance on foreign sources. Austin-based Silicon Laboratories Inc. was awarded $23.25 million for R&D in wireless product development, planning an $80 million investment.
This week, KoMiCo Technology, Inc. received a $2 million grant to expand its Round Rock facility, committing $36 million and creating 70 jobs. The company is a subsidiary of South Korea’s KoMiCo Ltd., which has a market capitalization of nearly $426 billion.
Governor Greg Abbott emphasized Texas’ commitment to securing domestic supply chains and boosting economic growth. The Texas CHIPS Act operates separately from the federal CHIPS Act, which has allocated $6.5 billion for semiconductor manufacturing in Texas.
Expanding semiconductor production in Texas is expected to provide long-term economic benefits, including job creation, technological advancements, and increased supply chain stability. With companies committing billions in capital investments, Texas is positioning itself as a global leader in semiconductor manufacturing. Industry experts believe these investments will help reduce reliance on foreign semiconductor suppliers, ensuring the U.S. remains competitive in the high-tech sector.
Additionally, the Texas CHIPS Act is expected to attract more private and public investments into the state. With its business-friendly policies, access to skilled labor, and growing infrastructure, Texas continues to be the preferred destination for technology companies. State leaders anticipate that continued support for semiconductor production will further strengthen Texas’ economy and enhance national security by reducing dependence on overseas manufacturing.
