A Look at Major Semiconductor Investments

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Amidst geopolitical tensions between China and Taiwan driving chipmakers to seek manufacturing alternatives, Texas has become a prominent destination for semiconductor investment. With a combination of low taxes, new subsidies, and easy access to materials and ports, Texas has attracted more than 50 new semiconductor projects, totaling over $210 billion since the introduction of the $52 billion CHIPS and Science Act in 2020. Texas is expected to receive more than $61 billion in semiconductor investments, with six projects set to create over 8,000 jobs.
Governor Greg Abbott signed the Texas CHIPS Act into law, allocating $1.4 billion to incentivize chip companies to manufacture in the state and encourage universities to establish related research and development centers. Several global giants, including Samsung, Texas Instruments, Infineon, GlobalWafers, NXP, X-FAB, Applied Materials, Apple, and Amazon, have increased their operations in Texas. Furthermore, Arizona leads in terms of new chip investments, with Intel’s $20 billion fab and Taiwan Semiconductor Manufacturing Co.’s $40 billion site.
Samsung’s new $17 billion semiconductor fabrication plant, located in Taylor, Texas, is set to come online soon. This facility will produce Samsung’s first advanced chips in the U.S., adding to its existing fabs in Austin. Texas Instruments is also at the early stages of its $30 billion project in Sherman, Texas, representing the largest new chip investment in the state.
Water and power resources are vital for chip manufacturing, and Texas offers several advantages in this regard. Sherman’s ample water supply and Texas’ unique independent power grid have attracted companies like Texas Instruments and Taiwan’s GlobalWafers. Despite a past grid failure during an extreme winter storm, Texas has taken measures to improve the reliability, resilience, and security of its power infrastructure.
In the pursuit of sustainability, companies like Samsung, Infineon, and NXP have transitioned entirely to renewable energy. Texas Instruments and Samsung are also increasing water reuse goals at their new facilities, aligning with the state’s efforts to address water needs amidst population growth.
Texas’ spacious land and favorable business policies have historically made it attractive for new businesses, including chip manufacturers. The state’s manufacturing facilities are diligently monitored, with CNBC granted rare access to the clean rooms of three major chip fabs.
In conclusion, Texas has emerged as a significant hub for chip manufacturing in the U.S., driven by geopolitical tensions and government incentives. With an influx of substantial investments from major global players, the state is poised to play a crucial role in the next generation of chip manufacturing, creating thousands of jobs and fostering technological advancements in the semiconductor industry.
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