(Center Square) – More taxpayer money is to fund the expansion of semiconductor manufacturing in Texas. The first four grants were awarded to companies with a market capitalization of hundreds of billions of dollars in the stock market.
It has received almost $700 million in taxpayer grants through the Texas Chips Act, passed by Congress and signed by Gov. Greg Abbott in 2023.
In November 2024, the first $4.12 million TSIF grant was Intelligent Epitaxy Technology, Inc. He was awarded to the company and expanded its business at Allen’s wafer production facility. The market capitalization is valued at over $6 billion, according to the delayed quote from the Taipei Exchange.
In particular, Intelliepi is the only domestic manufacturer of epitaxy-based compound wafers in the United States that first incorporated the technology into Texas. It has pledged a capital investment of $41 million to almost triple annual wafer production in Texas.
In February, Dongjin Semichem Texas received a $2.4 million TSIF grant for its specialty chemicals and materials facility in Killeen, Center Square reported. The DST facility will replace the first foreign source of thinner produced in Texas. DST has pledged a capital investment of $110 million. The Killeen facility is expected to create 24 new jobs.
Also in February, Austin-based Silicon Laboratories Inc. received a $23.25 million TSIF grant to support research and development for wireless product development. According to Nasdaq, the market capitalization is $4.5 billion.
Silicon Lab, which is expected to earn more than $80 million in capital investments, conducts integrated chip design and development, providing wireless technology and integrated hardware and software solutions for multiple industries. Invest in cutting-edge semiconductor design and testing equipment, developing platforms for lab construction, artificial intelligence machine learning accelerators and other technologies.
“This cutting-edge lab is a strategic investment in the future of Texas innovation,” Gov. Abbott said.
“As a Texas-born company, Silicon Lab is dedicated to quitting its lasting legacy by accelerating the state’s role as a global technology leader,” said Matt Johnson, president and CEO of Silicon Lab. “Texas Chips ACT fundraising drives Silicon Labs, the Fabless Semiconductor Company, pushing the boundaries between wireless chip design and R&D, driving innovation, job creation and economic growth.”
This week, Korea-based Komico Technology, Inc. A $2 million TSIF grant was awarded to the Round Rock facility. Performs precision cleaning and coating of semiconductor wafer manufacturing tools and sells equipment parts to customers in the semiconductor industry.
Komico is expected to make a $36 million capital investment to expand its facility by more than 40,000 square feet. It is expected to promote the application of aggressive coatings to cleanroom capacity, production lines for contamination removal, and manufacturing tools. The facility expansion is expected to create 70 new jobs.
According to Kosdaq, the Texas-based company is a wholly owned subsidiary of Komico Ltd., and the Korean company is a Korean company worth around $426 billion.
“This investment not only strengthens our industry, but also strengthens the technological structure of our country,” said Sung Soo Jang, CEO of Komico USA. “With Texas’ unwavering support, we are ready to promote innovation, create jobs and build a brighter future.”
“Texas is making strategic investments to lead the US revival in semiconductor manufacturing and secure a critical domestic supply chain,” Abbott said.
In response to supply chain breakdowns during the Biden administration, Abbott and major companies prioritized expanding semiconductor manufacturing in Texas.
In 2022, Texas instruments broke the ground at Sherman’s new semiconductor factory and announced a $30 billion investment to expand its manufacturing capacity over the long term. It was the largest private sector economic investment in Texas history.
Sherman and Taiwan-based GlobalWafers Co. announced in 2022 that they would build a 300mm silicon wafer factory.
In 2023, Texas achieved the best business environment, was the first to rank in semiconductor production, leading the US as the top exporter of semiconductors and other electronic components for 13 years, Center Square reported.
Texas is leading the US in manufacturing new chips. Currently, more than 43,000 people work in the Texas semiconductor industry.
The Texas Chips Act, separate from the federal Chips Act, which spent about $6.5 billion on Texas semiconductor manufacturing, reported Center Square.
