Texas Semiconductor Innovation Fund (TSIF)

The Texas Semiconductor Innovation Fund (TSIF) is a strategic grant initiative established by the Office of the Texas Governor through the Texas Economic Development and Tourism Office. Formed in June 2023 with the signing of House Bill 5174, also known as the Texas CHIPS Act, the TSIF is part of a broader state effort to maintain and enhance Texas’s global competitiveness in semiconductor research, design, and manufacturing. In addition to creating the TSIF, the Act also established the Texas Semiconductor Innovation Consortium (TSIC), which plays a key role in the strategic direction and oversight of semiconductor development across the state. Initially appropriated $698 million, the fund received an additional $250 million in June 2025, bringing the total available funding to approximately $948 million. The TSIF provides reimbursement-based grants to both public and private sector applicants within Texas. Eligible recipients include state entities, institutions of higher education, and business entities that have an established presence in Texas. Grants are intended to support semiconductor manufacturing and design projects that contribute to Texas’s leadership in the semiconductor industry. The fund aims to promote capital investment, spur job creation, and foster innovation across the state. TSIF grants can also be used for design-focused projects, and in such cases, may include reimbursement for employee salaries, particularly when paired with capital expenditures or other investments. Private business entities applying for TSIF grants must demonstrate their physical or legal presence in Texas. This can include being registered with the Texas Secretary of State or maintaining a permanent physical facility within the state. Applicants must attest that the local community is aware of the proposed project and are encouraged to show community support, including any local economic development incentives, though such incentives are not required for eligibility. A signature from an authorized community representative must be included to validate this awareness and support. The TSIF application process is streamlined and designed to operate on a rolling basis. This means that there is no formal deadline to apply—applications will be accepted and reviewed continuously until all funds are exhausted. Applications are processed in the order they are received, but only once they are deemed complete by the Texas CHIPS Office (TCO). Applicants are not required to submit letters of recommendation; however, projects already announced publicly may still be considered for funding, provided they meet all eligibility criteria. Evaluation of submitted applications is multifaceted. The TSIC Executive Committee reviews submissions based on several key criteria, including the scale of capital investment, number and quality of jobs created, size and complexity of the project, and its overall economic impact on both the local community and the state’s semiconductor ecosystem. While job creation and capital investment are not mandatory for eligibility, they do significantly enhance the competitiveness of an application. The program is particularly welcoming of design projects that include additional investments, acknowledging their importance to the industry’s growth. Additional information, including application forms for both private enterprises and state entities, is available through the Texas CHIPS Office. While there is no downloadable PDF guideline provided, resources including a FAQ section and access to upcoming Executive Committee meetings are available online via the Texas Secretary of State’s Open Meetings webpage. Interested applicants are encouraged to stay informed of committee developments and ensure they meet all requirements to maximize their likelihood of securing TSIF support.

Local community support and economic incentives strengthen competitiveness; job creation and capital investment are key evaluation factors.