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CNBCTech trends

How Texas Became The American Chipmaking Hub

Table of Contents

Texas has taken the top spot as the center of U.S. chip manufacturing. The Lone Star State now has more semiconductor fabrication plants than any other state, and six new projects will bring an estimated $61 billion of investment and 8,000 jobs. The integrated circuit was invented in Texas more than 60 years ago, and chip companies are attracted by low taxes, plentiful land, and the $1.4 billion Texas CHIPS Act passed in June. CNBC got a rare look inside three massive chip fabs and toured the two biggest projects under construction: Texas Instruments’ $30 billion site north of Dallas and Samsung’s $17 billion fab near Austin.

Correction: This story has been updated to reflect the correct size ranking of Texas, and details about the invention of the transistor.

00:00 — Introduction
01:58 — Birthplace of the integrated circuit
05:12 — Attracting chip companies
08:36 — Most fabs in the U.S.
12:19 — Water, power and downturn

Produced and Shot by: Katie Tarasov
Edited by: Evan Lee Miller
Supervising Producer: Jeniece Pettitt
Animation: Jason Reginato, Andrea Schmitz
Additional Camera: Katie Brigham, Sydney Boyo, Andrew Evers
Additional Footage: Apple, ASML, Getty Images, KCBD, Intel, NXP, Panda Power Funds, Samsung, Texas Instruments, TSMC

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How Texas Became The American Chipmaking Hub

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