Governor Greg Abbott Directs $195 Million for Texas Semiconductor Packaging and Foundry Tooling

AUSTIN, Texas — Governor Greg Abbott and the Texas Semiconductor Innovation Consortium (TSIC) announced on Monday the distribution of $195 million in state capital grants through the Texas Semiconductor Innovation Fund (TSIF) to construct advanced 3D semiconductor packaging cleanrooms, silicon wafer metrology laboratories, and microelectronics workforce training facilities in Sherman, Richardson, and Austin.

The investment complements federal CHIPS Act incentives, specifically addressing the critical domestic packaging bottleneck: while American foundries are manufacturing advanced silicon wafers, more than 85% of advanced packaging, testing, and die stacking currently occurs overseas in Asia.

Building Texas's Advanced Packaging Ecosystem The $195 million state funding package allocates:

• 3D Advanced Packaging Cleanroom Tooling: $115 million for automated die-bonding, silicon interposer lithography, and thermal dissipation testing tools.
• Metrology and Quality Assurance Labs: $50 million partnering with the University of Texas at Austin and UT Dallas for nanoscale laser inspection.
• Semiconductor Apprenticeship and Technician Academies: $30 million providing tuition-free microelectronics manufacturing certifications at Texas community colleges.

"Texas is the birthplace of the integrated circuit, and we are ensuring that the future of advanced semiconductor manufacturing and packaging is built right here in the Lone Star State," Governor Greg Abbott said during a press conference in Austin. "By investing $195 million in advanced cleanrooms and workforce development, we are securing our nation's critical technology supply chains, creating thousands of high-paying jobs for Texans, and driving economic innovation for generations to come."

Industry executives, regional chambers of commerce, and engineering deans commended the grant distribution, emphasizing that state matching funds accelerate the timeline for commercial fabs to achieve full-scale production.