A semiconductor consortium led by Southern Methodist University in Dallas is in line for nearly $29 million in new money. Roughly $24 million of it comes from the federal government, and it is aimed at building chip infrastructure, training workers and getting new technology to market across North Texas and southern Oklahoma.
According to SMU, the Texoma Semiconductor Tech Hub will receive nearly $29 million, including $24 million from the U.S. Department of Commerce. The money is meant to develop innovation infrastructure, build a workforce pipeline and accelerate technology commercialization. The federal funding is supplemented by $4.8 million from additional sources.
U.S. Deputy Secretary of Commerce Paul Dabbar made the announcement during a Friday afternoon gathering at SMU, per Yahoo Finance. That was last Friday, October 23.
Where the federal dollars are headed
SMU's breakdown splits the federal money three ways. About $13 million is earmarked for shared semiconductor infrastructure and specialized prototyping facilities, $6 million for workforce education and training, and $5 million for entrepreneurs and businesses.
The prototyping spaces are called Fablets. The Tech Hub will develop these facilities for electronic design, semiconductor manufacturing, packaging and testing, SMU says. The university also says the federal funding is backed by $100 million in private investment.
A growing roster across 29 counties
The hub brings together public, private and academic partners across 29 counties in North Texas and southern Oklahoma. Since receiving its federal Tech Hub designation in 2023, the SMU-led consortium has grown from 41 to 95 organizations.
SMU's semiconductor research page describes the hub's goal as unifying existing and planned semiconductor supply-chain infrastructure through regional collaboration and workforce expansion, including uplifting underserved communities. The same page says its model geographically consolidates the manufacturing supply chain from wafers to products.
Is the $24 million final?
The Economic Development Administration said it intends to award $24 million in Disaster Supplemental funding to the hub, while SMU describes the hub as set to receive it.
Cruz cheers the grant
Sen. Ted Cruz weighed in on Facebook, calling Texas “a national leader in emerging industries.” He wrote that the nearly $24 million federal grant “will strengthen American semiconductor production, create Texas jobs, and ensure America remains the global leader in technological innovation.” Cruz added that he looks forward to continuing to work with SMU and its partners.
The hub's push comes as Texas leans on its own incentives for chips. The KERA report, citing the governor's office, says the state's semiconductor innovation fund has paid out $512.3 million in grants to 29 projects, tied to $9.3 billion in capital investment.
Separately, the Texas Governor's office says a fund grant tied to an advanced manufacturing facility in Farmers Branch is expected to create more than 600 jobs.
