About the program
The TSIF is a part of the Texas Creating Helpful Incentives to Produce Semiconductors and Science Act, which Abbott signed into law in 2023.
The TSIF grant furthers the incentive program that aims to bring more semiconductor-related businesses to Texas, as well as support existing semiconductor manufacturers, like Samsung.
“The state’s considerable support of the Samsung Austin Semiconductor facility in Taylor is a powerful testament to Texas’ leadership in semiconductor innovation and economic growth,” State Rep. Caroline Harris Davila, R-Round Rock, said in the news release.
Samsung has already received $6.4 billion from the federal CHIPS Act, signed into law in 2022.
The history
Samsung announced its plans to build a semiconductor plant in Taylor in 2021.
A $45 billion project, it is the largest foreign direct investment in Texas on record, according to the Sept. 17 news release. The project includes two new fabrication plants, a new research and development fab, and a new advanced packaging facility on a 1,268-acre site, according to previous Community Impact coverage.
Samsung has also invested $4.7 billion for its fabrication facility to produce 2-nanometer chips, a new advancement in chip technology that increases efficiency, with smaller transistors that have lower energy consumption and higher speeds.
Why it matters
Semiconductors are vital parts of modern electronics like smart phones, and also drive artificial intelligence and 5G technology, according to the Semiconductor Industry Association. They power communication networks, power grids and financial systems.
“With approximately $40 billion invested in Texas, Samsung is helping to cement Texas’ position as the leading state for semiconductor manufacturing, bringing in more business investment to Texas communities and creating thousands of good-paying jobs for hardworking Texans,” Abbott said in the news release.
The Taylor plant will create over 20,000 direct and indirect jobs in the Central Texas region, according to a 2024 statement from the federal government. The majority of the jobs, about 17,000, will help with the construction of the facility. Over 4,000 employees will work on manufacturing.
Other semiconductor businesses have expressed interest in moving to or expanding in nearby cities, including Round Rock’s KoMiCo, according to previous Community Impact reporting.
What's next
Samsung's Taylor plant expects to be fully operational by 2026, according to previous Community Impact reporting.
