With $1.4 billion investment, Texas hopes to sprint to the front of the microchip manufacturing race

Leaders in the semiconductor industry and their Texas allies were alarmed by supply chain disruptions to the sector during the pandemic. Now the state is seeking to turn the lessons learned in the past three years into an opportunity.

Texas is pumping $1.4 billion into microchip research and manufacturing initiatives in an effort to attract new investments, secure lucrative federal grants and create thousands of high-paying jobs over the next decade.

On Thursday, Gov. Greg Abbott approved the Texas CHIPS Act, which will create the Texas Semiconductor Innovation Fund, a pot of money that will subsidize companies that manufacture chips in Texas and provide matching funds to universities and other state entities that invest in chip design or manufacturing projects.