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Texas semiconductor industry: a gateway for international business

The semiconductor industry in Texas has seen remarkable growth, especially after the CHIPS and Science Act was passed. By mid-2024, Texas had 236 semiconductor businesses, a 14.6% increase. Since 2021, private companies have invested $76 billion in this industry. This growth offers many opportunities for international businesses to collaborate and invest.

Robust growth and investment opportunities

The CHIPS for America initiative has greatly helped Texas’s semiconductor industry grow. Samsung, for example, plans to invest up to $6.4 billion in new facilities in Texas. These investments improve Texas’s semiconductor infrastructure, giving international businesses access to top-notch facilities and a strong supply chain, essential for efficient operations and innovation.

Texas is also strong in the global semiconductor market. Many Texas-based companies have led the development of advanced technologies like artificial intelligence, electric cars, and 5G. This makes Texas a hub for technological innovation, offering international businesses access to innovative research and development.

Research and development

Thanks to substantial state investments, Texas is becoming a major semiconductor research and development hub. The state has invested $440 million to create the Texas Institute of Electronics at the University of Texas at Austin, which will focus on advanced semiconductor packaging and integration.

Major university R&D centers drive semiconductor innovation, like the Microelectronics Research Center at UT Austin and the Texas Analog Center of Excellence at UT Dallas. These institutions offer international businesses access to top-tier research and skilled talent, encouraging collaboration and speeding up technological advancements.

Excellent business climate

Additionally, Texas offers a pro-business environment with incentives and tax breaks. For example, the Texas Semiconductor Innovation Fund provides grants to companies that promote economic development related to semiconductors.

This and favorable legal and regulatory conditions make Texas an attractive place for international businesses looking to expand into the U.S. Seeking legal advice is crucial for complying with laws and navigating tax requirements.

Texas’s growing semiconductor industry, driven by significant investments in infrastructure, research, and development and a pro-business climate, makes it a great place for international businesses to expand into the U.S.. Texas’s commitment to innovation and economic prosperity positions it as a leader in the semiconductor market, offering a dynamic environment for growth and success.

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