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Will Central Texas semiconductor scene be rewarded with CHIPS Act funding? Experts say yes

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Will Central Texas semiconductor scene be rewarded with CHIPS Act funding? Experts say yes


It still remains to be seen if Austin-area projects will benefit from legislation designed to boost the semiconductor industry, as the Commerce Department starts announcing as soon as this month which companies will be awarded funding.

Central Texas is among a handful of regions expected to see a boost from the Chips and Science Act, which was passed in 2022. The legislation made $52 billion available for companies that manufacture computer chips, billions more in tax credits to incentivize chip manufacturing, and tens of billions of dollars to fund scientific research and development of other U.S. technologies.

So far, no projects in Texas have been included in the first handful of announcements made by the Commerce Department, but local industry leaders remain optimistic in the Austin-area’s ability to compete with the hundreds of projects waiting to see if they will receive the remaining funding.

Ed Latson, CEO of Opportunity Austin, said he anticipates the funding to make a major impact in Central Texas, which is already home to facilities from companies including Samsung Semiconductor, NXP, Tokyo Electron and Infineon.

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“I expect to see grants being issued to local companies soon,” Latson said. “We have one of the most dynamic semiconductor ecosystems in the United States and this will only make us more competitive as a region and as a country.”

Kevin Fincher, CEO of the Austin Regional Manufacturers Association, agreed that the region remains in a strong position.

“I believe that Central Texas will lead in the semi-industry going forward, and we’re well positioned for that,” Fincher said.

The Austin-area’s existing ecosystem of companies in the semiconductor industry includes fabrication facilities that make chips, toolmakers and a supply base that works with the toolmakers and fabrication facilities.

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Fincher predicted that Central Texas projects could hear about funding awards as early as March.

“We expect in the in the coming month, March, that there is going to be a slew of announcements that will start to come out,” Fincher said. “I think Commerce is finalizing the applications and we are going to hear some pretty hopefully exciting announcements coming, which will impact some of the companies working here or that have operations here.”

Even before the passage of the CHIPS Act, the Central Texas region has been poised to see big expansions to its manufacturing capacity. Samsung, which already had two fabs in Austin, announced last year that it planned to build a $17 billion chip factory in Taylor. Filings also show the company could put as many as 11 additional fabrication facilities in Central Texas in the coming decades, though the company has said it does not have concrete plans.

Semiconductor giant NXP also has been considering an expansion in Austin. Last year, the Austin City Council approved an incentive deal worth just over a million dollars. Following Raimondo’s speech, the company said it continues to engage with the Commerce Department on its proposals.

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“While we cannot indicate a timeline with certainty, we understand the process could take a number of months and we are optimistic that the proposed expansion would meet the program goals,” a company spokesperson said. “We are pleased there continues to be an ongoing dialogue and movement on the need to support the industry.”

Fincher predicted investment will continue, both in company growth and in the workforce needed to support these companies.

Samsung to partner with UT engineering school, donate $3.7M to aid semiconductor workforce

CHIPS Act funding is leading to ‘tough conversations’

During a February 4 event hosted by Cybersecurity and Infrastructure Security Agency, Commerce Secretary Gina Raimondo said there are “tough conversations” as the department works on distributing the funding. During the event, Raimondo also said the department would now be prioritizing projects that will be operational by 2030.

The changes came as leading-edge companies requested about $70 billion in funding, or about double the amount in federal subsidies available. So far, Commerce has announced about $2.5 billion in funding to three companies BAE, Microchip, and Global Foundries

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Raimondo said while there’s risk in picking winners and losers, there is “way more risk in doing nothing” and said there will likely need to be another CHIPS Act in the future to continue to boost the industry.

“We’re going to have to say no to excellent companies with excellent proposals,” Raimondo said.

Raimondo acknowledged during the CISA event that companies were also likely frustrated to receive less funding than they were hoping.

While acknowledging that there have been project delays nationally that may be related to the rollout of funding, Matt Bryson, an industry analyst with Wedbush Securities, has already been working as intended.

“We’ve seen arguably a historic amount of chip infrastructure investment planned for the U.S., including from a number of companies that either had never invested in the U.S. or who had chosen not to invest in U.S. fabs in recent years,” he said.

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He added, the focus on projects that will be completed by 2030 makes sense.

“If the goal is to accelerate investment, I think it necessarily makes sense to prioritize the bird in hand so to speak, vs. investment plans that are further out and that might not come to fruition,” Bryson said.

Fincher, of ARMA, said Central Texas will likely benefit from the 2030 timeline.

“We are very much in the right spot,” he said. “Most of the companies that we’re looking at will be set up and operational and running by then. So, I think that’s an advantage right now to our manufacturing sector here in Central Texas.”



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Austin, TX

Austin airport one step closer to major expansion that will add 32 new gates

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Austin airport one step closer to major expansion that will add 32 new gates


AUSTIN, Texas — Austin-Bergstrom International Airport is one step closer to getting a major makeover after finalizing lease agreements with airlines that will support future renovations, including the addition of 32 new gates.

The airport on Wednesday announced the completion of Airline Use and Lease Agreements and Signatory Cargo Agreements with several major airlines and cargo companies, including Southwest Airlines, Delta Air Lines, United Airlines, American Airlines, Alaska Airlines, FedEx and UPS.

According to a press release from the airport, the use-and-lease agreements allow companies to commit funding to the project through rent and fees “generated under the agreements’ cost-recovery structure, supporting the airport’s ability to deliver projects that expand capacity, strengthen resiliency, and improve the passenger experience.”

The agreements will support the following projects at Austin-Bergstrom over the next 10 years:

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  • The addition of Concourse B, which will add 26 new gates, including 18 for Southwest Airlines and five with United Airlines.
  • Concourse M, adding six new gates, a bus to transport travelers to and from the Barbara Jordan Terminal, new concessions, restrooms and passenger amenities.
  • Enhanced seating and amenities, increased space and modernized concessions in Concourse A (home to all international flights). Delta Air Lines will have 15 gates, American Airlines will have nine, Alaska Airlines will have one and there will be eight common-use gates.
  • Updates to HVAC systems, electrical system, IT and telecommunications, storm drainage, water quality and de-icing infrastructure.

In a statement, District 2 Councilmember Vanessa Fuentes applauded the future job creation that’s to come out of the project. 

“This expansion program represents a tremendous economic opportunity for Austin—not only through the trades and construction jobs created during the buildout, but also through long-term jobs in concessions, airport operations, and airline services after the program is complete,” Fuentes said.

“This agreement reflects years of partnership, thoughtful negotiations, and shared vision with our airline partners. Their commitment provides the financial foundation we need to modernize our facilities, transform customer experience, and build the infrastructure needed to support Central Texas’ continued growth for generations to come. AUS would not be where it is today without the collaboration and investment of our airlines, and we are deeply grateful for their trust and partnership as we shape the future of air travel in Central Texas,” said Ghizlane Badawi, CEO of Austin-Bergstrom International Airport.

The final cost of the project is still under development, but is anticipated to grow from an estimated $4 billion to $5 billion. According to the airport, funding sources include airport cash reserves, airport revenues, bond proceeds and grants from the Federal Aviation Administration. 

“No local Austin taxpayer dollars are used to fund the airport’s expansion program,” the release said.



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Black Sheep Coffee Opens First Austin Location, Expanding Its Texas Footprint | What Now Austin

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Black Sheep Coffee Opens First Austin Location, Expanding Its Texas Footprint | What Now Austin


Black Sheep Coffee, the international coffee brand, will celebrate the opening of its first Central Texas location in Downtown Austin with two public events. The new café, located at W 6th St & Guadalupe St, Austin, TX 78701, marks a significant step in the company’s U.S. expansion following strong growth throughout the Dallas–Fort Worth region.

A public ribbon-cutting ceremony, hosted in partnership with the Austin Chamber of Commerce, will take place on Thursday, January 15 from 12:00 p.m. – 2:00 p.m., welcoming community members, local leaders, and partners into the space. During the event, guests can enjoy half-price lattes, including coffee and matcha drinks.

On Saturday, January 17, Black Sheep Coffee will officially celebrate their grand opening with a Sips & Beats event from 11:00 a.m. to 2:00 p.m., featuring live vinyl set by DJ Foxxy Brown, signature menu tastings, and half-price lattes throughout the event. Continuing the celebration, the store will also offer a 50% discount to International Half Marathon medal holders on Sunday, January 18, welcoming runners and spectators to refuel post-race.

Designed to reflect Austin’s creative identity, the location features custom graffiti artwork inspired by the city’s street art scene and the energy of Downtown. The new outpost will serve Black Sheep Coffee’s complete menu, including its 100% specialty-grade Robusta coffee, ceremonial-grade matcha, smoothies, pastries, Norwegian waffles, curated food offerings, and two bakery variations created exclusively for the Austin store. Additional limited-time items will debut later in January as part of the brand’s functional health product refresh.

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Austin has long been on our radar for its passionate community and standout coffee culture,” said Eirik Holth, co-founder of Black Sheep Coffee in a statement. “We’re excited to become part of that fabric and bring something new to Downtown. With several U.S. locations in the pipeline, Austin marks a major milestone in our next chapter of growth.

Black Sheep Coffee chose Austin for its strong alignment with the brand’s ethos and its reputation as a city that celebrates individuality and creativity. The opening also reinforces the company’s long-term commitment to Texas, with several additional locations planned statewide for 2026.

The Austin café will be open Sunday through Thursday from 6:00 a.m. to 8:00 p.m. and Friday and Saturday from 6:00 a.m. to 9:00 p.m. For more information, visit BlackSheepCoffee.us.



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Lawsuit: Brianna Aguilera’s parents allege underage alcohol service at Austin tailgate contributed to daughter’s death

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Lawsuit: Brianna Aguilera’s parents allege underage alcohol service at Austin tailgate contributed to daughter’s death


The parents of Brianna Aguilera have filed a lawsuit against two organizations, alleging that they served alcohol to their underage daughter which contributed to her death in Austin.

Before Aguilera fell to her death from the Rio 21 Apartments in West Campus, the lawsuit states that she attended a tailgate at the Austin Blacks Rugby Club’s facility, organized by the UT Latin Economics and Business Association.

Both the Austin Blacks Rugby Club and the UT Latin Economics and Business Association were listed as defendants in the lawsuit.

>> What we know about Texas A&M student Brianna Aguilera’s death in Austin

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Even though the lawsuit states Aguilera was “noticeably intoxicated” at the tailgate, her parents argue that the defendants continued to serve her alcohol.

According to court documents, Aguilera allegedly began stumbling at the tailgate and needed help standing at times. At some point, the lawsuit said she fell into the woods and lost her phone.

After leaving the tailgate at approximately 10 p.m., court documents state Aguilera died around two hours later.

The lawsuit also accuses the defendants of negligence and gross negligence for serving alcohol to Aguilera despite her age and allegedly overserving her.

In the suit, Aguilera’s parents demanded a trial by jury and sought at least $1 million plus interest, costs and punitive damages.

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Aguilera’s parents also seek damages for wrongful death, citing the defendants’ alleged misconduct.

Houston-based attorney Tony Buzbee, who’s representing the Aguilera family, commented on the lawsuit in a Tuesday news conference.

Watch the full news conference below:

“Brianna was obviously overserved,” Buzbee said. “Even the police have concluded that she was overserved at that tailgate. She was not 21.”

Buzbee also stated that the Austin Police Department has allegedly told multiple witnesses not to talk with him and Aguilera’s parents.

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“They told the three, the three individuals that were in that apartment that night when this young girl died. They told them, do not speak to Brianna’s mother or her lawyers,” Buzbee said.

He said that the lawsuit could provide a way for the witnesses to eventually come forward with information.

“By filing this lawsuit, not only will we hold accountable an entity or entities that were involved in overserving Brianna and other minors, but we will also be able to subpoena individuals and documents and video and data so we can continue our investigation,” Buzbee said.

KSAT’s sister station, KPRC, has reached out to both the Austin Blacks Rugby Club and the UT Latin Economics and Business Association for comment on the lawsuit. This story will be updated once the organizations provide a statement.


More coverage of this story on KSAT:

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