Texas Leads Domestic Semiconductor Industry Investment
U.S. Representative Michael McCaul highlights Texas investment as construction continues on a new state semiconductor institute.
Updated on Oct. 23, 2026 in Semiconductors
Live Poll
Should the U.S. prioritize domestic semiconductor manufacturing to ensure national security?
At the Texas Semiconductor Summit, U.S. Representative Michael McCaul discussed how the CHIPS for America Act bolsters regional growth. Texas currently accounts for $350 billion of the $850 billion invested in the U.S. semiconductor industry.
Why it matters
The CHIPS Act aims to mitigate national security risks by reducing reliance on offshore manufacturing in Taiwan, which currently supplies 90% of the world's advanced semiconductors. Domestic production capacity is essential for supporting future artificial intelligence and advanced weaponry.
The CHIPS for America Act provides refundable investment tax credits and R&D grants to drive domestic production. Texas is expanding its infrastructure with the construction of a new Semiconductor Institute at the RELLIS campus.
The players
Michael McCaul
He is a U.S. Representative who plays a central role in overseeing national policy regarding domestic semiconductor manufacturing and the CHIPS for America Act.
Texas A&M University
This institution is a major public research university currently expanding its infrastructure to include a dedicated Semiconductor Institute on its RELLIS campus.
The details
The Texas A&M Semiconductor Institute construction began in April 2026 and is slated for completion in 2028. Additionally, the Terafab data center is currently under development in Grimes County, located 15 to 20 minutes away from the university campus.
Timeline
The CHIPS Act was first discussed in 2020.
The CHIPS for America Act officially passed in 2022.
Ground was broken on the Semiconductor Institute in April 2026.
Representative McCaul discussed the act at the summit on October 22, 2026.
The Semiconductor Institute is expected to be finished in 2028.
The Tech Race
This development marks a significant acceleration in the transition from offshore semiconductor reliance to domestic production facilities. It positions Texas as a critical hub in the broader U.S. effort to compete against international manufacturing dominance.
The expansion of regional semiconductor manufacturing can lead to local job creation and improved infrastructure for advanced technology research. These investments may eventually accelerate the availability of consumer electronics and hardware developed through domestic innovations.
The takeaway
Domestic investment in semiconductor infrastructure is essential for securing the future of advanced technology and national defense. Readers can monitor how regional research hubs like the RELLIS campus continue to influence the broader U.S. manufacturing landscape.
Further reading
For more on the industry's development, visit our section on Semiconductors.
Source note: This article includes information reported by The Eagle.
Live Poll
Should the U.S. prioritize domestic semiconductor manufacturing to ensure national security?
