Figure 1: Semiconductor state export comparison in 2022 (Source: Texas Economic Development, Office of the Governor).
Figure 1: Semiconductor state export comparison in 2022 (Source: Texas Economic Development, Office of the Governor).

IFTLE has spent a lot of time recently focusing on the availability of U.S. government funds for the “onshoring” of state-of-the-art (SOTA chip) production and packaging. We also need to be aware of activity at the state level.

Let’s take a look at Texas first since after all, it was the birthplace of the integrated circuit (IC) [Jack Kilby at Texas Instruments in Dallas]. Texas claims that in 2022 it exported more semiconductors and other electronic components than California, Arizona, and New York combined (Figure 1).

As of 2022 Texas was also the leading state for semiconductor manufacturing employment with a workforce of > 43K.

Figure 2: List of semiconductor manufacturing facilities in Texas. (Source: Texas Economic Development, Office of the Governor)
Figure 2: List of semiconductor manufacturing facilities in Texas. (Source: Texas Economic Development, Office of the Governor)

In 2020 TX Senator John Cornyn introduced the CHIPS Act and then helped broker it to gain  congressional approval.

In 2021 Texas formed a task force to coordinate the development of a proposal to the Department of Commerce (DOC) to make it the future site of the National Science and Technology Council (NSTC) and the National Advanced Packaging Manufacturing Program (NAPMP).

Texas CHIPS Act

In June of 2023 the State of Texas provided $552 million in funding to the Texas Institute for Electronics (TIE). TIE is a University of Texas at Austin public-private partnership of semiconductor systems and defense electronics companies, national labs and academic institutions.

This funding includes $440 million for TIE to develop state-of-the art fabrication facilities. These facilities will support breakthroughs in the advanced packaging and heterogenous integration of semiconductors, an area where Texas can leverage extensive expertise and resources.

The Texas CHIPS act also created the Texas Semiconductor Innovation Consortium (TSIC) and the Texas Semiconductor Innovation Fund (TSIF).

The TSIC will leverage the expertise and capacity of institutions of higher education, industry and non-profit stakeholders to develop a comprehensive strategic plan to ensure ongoing semiconductor innovation; sustain Texas’ leadership in semiconductor research, design and manufacturing; attract public and private investment in Texas related to semiconductors; identify and expand opportunities for workforce training and development related to semiconductors; and establish a forum for public and private stakeholders across the semiconductor manufacturing industry with Texas to focus on education, research and commercial production.

In June 2023, more than $698MM was appropriated for the TSIF. The TSIF may be used to provide grants to state institutions of higher education, for semiconductor research, design and manufacturing projects; and for grants to business entities with an established presence within Texas to encourage economic development related to semiconductor manufacturing and design.

Rumors about TIE

Rumors abound that TIE is one of the three finalists for the DARPA NGMM (Next Generation Microelectronics Manufacturing) facility. At the recent IMAPS On shoring meeting in Arlington VA, Dev Palmer of DARPA indicated that the NGMM winner would be announced later this summer.

NGMM is rumored to be awarded to Texas
Figure 3: Next-generation microelectronics manufacturing (NGMM)’s national facility for 3D HI R&D and low-volume manufacturing.

For all the latest on Advanced Packaging stay linked to IFTLE…………………………..

Phil Garrou

Dr. Philip Garrou is a subject matter expert for DARPA and runs his consulting company…

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