Texas Semiconductor Innovation Fund

The Texas CHIPS Act, approved in June 2023, creates a $698 million fund benefiting companies that manufacture chips in Texas. The fund will issue grants to private businesses with an established presence within the state to encourage economic development related to semiconductor manufacturing and design. Eligibility, the application process, and other parameters of the Fund are expected to be forthcoming.

The Act also provides matching funds to universities and other state entities that invest in chip design or manufacturing projects. The University of Texas at Austin will receive $440 million to build fabs, which will be part of the Texas Institute for Electronics (TIE), a public-private partnership launched in 2022 that plans to become a nonprofit, independent organization in 2023. TIE focuses on advanced packaging systems. Nearby Texas A&M University will receive $226 million to build fabs for quantum and artificial intelligence fabrication, as well as related research activities.