Austin, TX
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.
“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.
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.
“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
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.
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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This week on Texas Eats:
Ramen Tatsu-Ya
1600 E 6th St., Austin, Texas 78702
Ramen Tatsu-ya is an Austin staple known for serious Japanese ramen, crafted by chefs Tatsu Aikawa and Takuya Matsumoto. Their broths are slow-cooked, complex, and authentic, and their noodle bowls are rich, comforting, and widely praised by locals and critics alike.
Otto’s Ice House
111 Newell Ave., San Antonio, Texas 78212
Otto’s Ice House, located in the Pearl District, mixes the chill vibes of a Texas ice house with upscale touches. From street tacos and bratwurst to creative cocktails and live music, it’s a place to kick back with friends outdoors or by the river. The menu is casual but well-executed, and the owner Levi Goode brings in a reputation for quality and storytelling.
Texas Bistro
1932 S Seguin Avenue #209, New Braunfels, Texas 78130
Texas Bistro is a New American restaurant in New Braunfels that focuses on fresh, thoughtfully prepared dishes in a relaxed but refined environment. It draws praise as one of the area’s standout places for dinner.
Goode Co. BBQ
5109 Kirby Drive, Houston, Texas 77098
Goode Co. Barbeque is a long-standing Houston institution (since 1977) specializing in Texas-style barbecue slow-smoked over mesquite wood. They serve tender brisket, ribs, sausage, and classic sides, often paired with their signature pecan pie. The vibe is down-home, rustic, and welcoming — a place built around tradition, smoked meats, and a sense of genuine Texas BBQ hospitality.
Canje
1914 E 6th St. Ste C, Austin, Texas 78702
Canje is a vibrant Caribbean-inspired restaurant founded by Chef Tavel Bristol-Joseph. Located in East Austin, it blends Caribbean and Guyanese traditions with modern techniques, emphasizing fresh, regionally-sourced ingredients and sustainable practices. The atmosphere is lively and colorful, with bold flavors and inventive dishes that reflect the broader diaspora of island cuisines.
Best Quality Daughter
602 Avenue A, San Antonio, Texas 78215
Best Quality Daughter is an Asian-American restaurant in the Pearl, founded by Chef Jennifer Dobbertin. It showcases flavors from her heritage and her travels, offering dishes that blend comfort with creativity in a welcoming space. It’s earned acclaim locally and has become a key part of San Antonio’s emerging food scene.
McAdoo’s Seafood
196 N Castell Ave., New Braunfels, Texas 78130
McAdoo’s is an upscale seafood restaurant in downtown New Braunfels housed in the old post office building. They offer a mix of fresh seafood, authentic Cajun-Creole dishes, and Texas Creole favorites. The setting includes a courtyard and intimate bar, and the menu combines fine dining touches with hearty, flavor-forward preparations.
La Tequila Mexican Restauarnt
90 Crossroads Blvd., Balcones Heights, Texas 78201
La Tequila Jalisco offers auténtica comida mexicana in Balcones Heights with a menu full of Jalisco-style dishes like enchiladas, fried shrimp, and classic tacos. Its warm, family-friendly setting makes it a go-to for locals craving hearty, approachable Mexican food.
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AUSTIN (The Texas Tribune) — The records in Texas Attorney General Ken Paxton’s divorce case have been unsealed.
Judge Robert Brotherton, who is presiding over the case, signed an order Friday morning allowing the records to be made public. The decision came after Paxton and his wife, state Sen. Angela Paxton, announced that they had come to an agreement late Thursday to unseal the documents.
Tyler Bexley, an attorney for a group of media organizations fighting for the records to be released, celebrated the decision as a win for transparency.
“We’re certainly pleased with the result,” Bexley said after the hearing.
The move was an abrupt about-face for the couple, who had fought to keep the records secret. It’s unclear exactly what brought on the change.
The records were released before noon. They show the Paxtons have entered mediation, and their blind trust had doled out $20,000 to each of them to pay for their attorneys. The documents also show that earlier this month, Angela Paxton asked her husband to produce records pertinent to the case. They also show multiple judges recused themselves from the case before it was given to Brotherton, a visiting judge based in Wichita Falls.
The Texas Newsroom previously published copies of several records — including Paxton’s general denial of his wife’s divorce petition — before they were sealed.
The records did not shed more light on the couple’s financial situation, division of assets or the alleged affair that led to the divorce — but additional filings will be made as the case continues. Bexley said the media organizations agreed to redactions only of personal information like Social Security numbers and home addresses.
State Sen. Angela Paxton filed for divorce in July alleging adultery. Soon after, she asked for the court record to be sealed. A previous judge handling the case agreed and put all of the records under seal. Ken Paxton initially supported the decision, filing a court document that accused the press of attempting to unfairly invade his personal life.
Eight media organizations and a nonpartisan nonprofit opposed the sealing. The media group argued Paxton’s divorce records should be public because he is an elected official running for office who has faced repeated allegations of corruption. The attorney general’s finances, which are a subject of the divorce case, have been central to the misconduct allegations against him. While he has been charged with multiple crimes during his decade in statewide office, Paxton has never been convicted.
Paxton is now challenging John Cornyn in the Republican primary for U.S. Senate.
Laura Roach, one of Ken Paxton’s lawyers, said after the Friday hearing that the attorney general had always wanted the record to be unsealed.
“Mr. Paxton has always wanted us to actually unseal it,” she said. “Attorneys get on a path and we think that that’s the right way to go and we were finally able to get everybody on the same page.”
When asked why he initially opposed it so strongly, she added, “that’s just legal stuff. … His attorneys said that.”
Angela Paxton had asked the records be sealed because doing so would “not have an adverse affect on the public health or safety.” Her representatives declined to respond on Friday.
Michael Clauw, the communications director for the nonprofit Campaign for Accountability that also sought the release of the records, said he does not believe Ken Paxton actually wanted them to be made public.
“It’s ridiculous to believe that Ken Paxton ‘always wanted’ his divorce record to be unsealed,” he said. “Only when it became apparent he likely would lose in court did he change his tune.”
Roach said she expects the case to be resolved amicably soon. Neither Ken Paxton nor Angela Paxton appeared at the court.
This article originally appeared in The Texas Tribune at www.texastribune.org. The Texas Tribune is a nonprofit, nonpartisan media organization that informs Texans – and engages with them – about public policy, politics, government and statewide issues.
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