Texas Expands Semiconductor Capacity Under CHIPS Act
The state is building new research infrastructure to capture a larger share of the $850 billion U.S. semiconductor industry.
Updated on Oct. 23, 2026 in Semiconductors
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At the recent Texas Semiconductor Summit, U.S. Representative Michael McCaul emphasized the critical role of domestic manufacturing incentives provided by the 2022 CHIPS for America Act. The state is currently leveraging these federal policies to anchor its expanding semiconductor infrastructure.
Why it matters
The CHIPS Act aims to mitigate reliance on Taiwan, which currently produces 90% of the global supply of advanced semiconductors, to address national security concerns regarding offshore manufacturing vulnerabilities to China.
Texas accounts for $350 billion of the $850 billion total semiconductor investment across the U.S. The state is accelerating localized manufacturing through current projects like the Texas A&M Semiconductor Institute on the RELLIS campus.
The players
Michael McCaul
U.S. Representative who discussed the legislative and security implications of the CHIPS for America Act.
Texas A&M University
Research institution building a dedicated Semiconductor Institute on its RELLIS campus.
The details
The CHIPS Act functions by offering refundable investment tax credits and research grants to incentivize domestic production of chips required for artificial intelligence and weapon systems. Texas A&M is formalizing its role in this ecosystem by constructing the Semiconductor Institute on its RELLIS campus. The facility is strategically positioned in proximity to industrial projects like the Terafab data center currently under construction in Grimes County.
Timeline
2022: The CHIPS for America Act was passed into law.
April 2026: Ground broke on the Texas A&M Semiconductor Institute building.
October 22, 2026: Representative Michael McCaul discussed the act at the Texas Semiconductor Summit.
2028: Expected completion date for the Semiconductor Institute.
The Tech Race
The U.S. is racing to onshore production to reduce its dependence on Taiwan, which currently controls 90% of the advanced semiconductor global supply. This expansion is designed to secure high-end chip manufacturing against geopolitical risks associated with China.
The build-out of facilities like the Terafab data center in Grimes County creates new specialized labor requirements within the state's technology sector. Residents and local firms should expect increased industrial demand as these projects reach operational status by 2028.
The takeaway
Texas is positioning itself as a primary hub for domestic semiconductor manufacturing to counteract global supply chain vulnerabilities. Observers should track the 2028 opening of the Texas A&M Semiconductor Institute as a key benchmark for the state's production capacity.
What happens next
Construction on the Texas A&M Semiconductor Institute is scheduled for completion in 2028.
Further reading
Explore the Semiconductors section for more updates on domestic chip manufacturing infrastructure.
Source note: This article includes information reported by The Eagle.
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