Texas Semiconductor Innovation Fund (TSIF)
Office of the Governor of Texas — Economic Development & Tourism Office
Negotiated (millions)
Texas semiconductor manufacturing grants
Texas's own CHIPS Act equivalent: ~$948 million in state appropriations to attract and grow semiconductor manufacturing, design, and research in Texas. For-profit companies with an established Texas presence can apply for project grants to expand semiconductor manufacturing capacity, develop chip design capabilities, or fund semiconductor R&D. Award sizes are negotiated based on capital investment and job creation commitments — recent awards have ranged from $4.8M (Avant Technology) to $20.9M (Applied Optoelectronics). Applications submitted by email to the EDT office; no published competitive deadline.
- Funding type
- Grant
- Level
- State
- Amount
- Award amounts are negotiated based on project scope, capital investment, and job creation. Confirmed awards to for-profit companies range from approximately $4,800,000 to $20,852,518 in 2025–2026. Total appropriations: ~$948 million.
- Realistic amount
- For-profit company awards observed in the $5M–$21M range for expansion projects. Smaller design-focused or R&D projects…
- Deadline
- Rolling — submit application to tsif@gov.texas.gov; no published intake windows
- Status
- active
- States
- TX
- Payment model
- milestone
Who qualifies
- Business entity with an established presence in Texas (existing facility, registered entity, or committed new facility)
- Project must be related to semiconductor manufacturing, chip design, or semiconductor research
- Project positioned to advance or sustain Texas's leadership in the semiconductor industry
- Must commit to capital investment and job creation in Texas
- Must demonstrate prior local community awareness of the proposed project
- Must provide evidence of good standing under the laws of formation state (e.g., Certificate of Status from Texas Secretary of State)
- Local economic incentives (county/city incentive agreements) strengthen applications
Hard requirements
- Must be incorporated
- Location restriction: Texas
- Restricted to industry: semiconductor manufacturing, design, or research
What it covers
Eligible expenses
- Capital equipment for semiconductor manufacturing (fabrication, packaging, testing equipment)
- Facility construction or expansion for semiconductor manufacturing operations
- Semiconductor chip design infrastructure and design tools (EDA software, IP licensing)
- R&D activities related to semiconductor manufacturing processes or chip design
- Workforce training related to semiconductor production
Ineligible expenses
- Projects outside the state of Texas
- Projects unrelated to semiconductor manufacturing, design, or research
- Operating expenses unrelated to the specific funded project
- Costs incurred before grant agreement execution
How to apply
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1
Prepare application narrative and financial projections
Develop a comprehensive project narrative covering: description of semiconductor manufacturing/design activities, capital investment plan (amounts, timeline), job creation/retention projections, community economic impact, and description of how the project advances Texas's semiconductor ecosystem.
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2
Secure local economic incentives
Contact county/city economic development offices where your project is located to secure local incentive agreements (tax abatements, infrastructure commitments). These are not required but are explicitly cited as strengthening TSIF applications.
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3
Submit private sector application by email
Download and complete the TSIF Private Sector Application form from gov.texas.gov/business/page/tsif. Submit completed application with all supporting documentation to tsif@gov.texas.gov. The EDT will confirm receipt and may request additional information.
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4
EDT review and award negotiation
The Economic Development & Tourism Office reviews the application, assesses project merit and impact, and negotiates award terms. Award amounts and milestones are set through a grant agreement. Timeline from application to award announcement is not published but has ranged from several months to over a year.
Industry & certifications
NAICS codes: 334413, 334419, 334515, 541715, 334614
Awards are negotiated — having a letter of support from your county judge or city mayor and a concrete capital investment commitment (equipment purchase orders, site plans) materially strengthens your position. TSIF has funded companies as small as Avant Technology ($4.8M) alongside large fabs.
Deadline & timing
Applications submitted by email to tsif@gov.texas.gov. The EDT processes applications on an ongoing basis. No published cycle or deadline. Most competitive when capital investment and job creation commitments are substantial and shovel-ready.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.