Texas has long been a hub for innovation and opportunity, cementing its role as a leader in technology and research. 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.
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—led by the Texas Association of Business (TAB)—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, a key initiative to solidify Texas as a semiconductor leader. The act 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. TAB’s strong advocacy for 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.
We are grateful for the leadership of Governor Abbott, as well as State Senator Joan Huffman and State Representative Greg Bonnen, for their work to enact the Texas CHIPS Act and shepherd the TSIF grant over the finish line, and for their ongoing work to fortify Texas as the best economic environment in the galaxy.
With continued investments from the federal CHIPS Act, the Texas CHIPS Act and the TSIF, Texas is securing its place as a global leader in the semiconductor industry, driving both technological innovation and economic prosperity.
-Glenn Hamer, President & CEO, Texas Association of Business
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