SMU-led semiconductor hub receives $29 million to build North Texas chip infrastructure

The Texoma Semiconductor Tech Hub will receive nearly $29 million to expand chip manufacturing capabilities in North Texas and southern Oklahoma. The coalition, led by Southern Methodist University, plans to use the funds to build shared infrastructure, train workers, and support the commercialization of new chip technologies.

The U.S. Department of Commerce provided nearly $24 million of the total package. An additional $4.8 million comes from other sources. The hub is one of 31 tech hubs established by the Commerce Department in 2023 and one of four focused specifically on semiconductors. It operates across 29 counties in the region.

J.C. Chiao, an SMU professor of electrical and computer engineering, stated that the funding addresses critical industry needs as the sector expands. Chiao, along with professors Jennifer Dworak and Scott Douglas, helped form the coalition. The money is allocated to three specific areas. Thirteen million dollars will fund shared infrastructure and the creation of fablets. Six million dollars will support workforce education and training. Five million dollars will help entrepreneurs bring chip technology to market.

Fablets are smaller, less expensive facilities than full-scale semiconductor fabs. They provide researchers and businesses with access to equipment for design, manufacturing, packaging, and testing. The initiative aims to help startups move from prototype to commercial production by improving access to funding, industry networks, intellectual property, and shared resources.

The hub plans to strengthen the local talent pipeline using artificial intelligence and digital twin technology in its training programs. Suku Nair, SMU's vice provost for research, said the region must address workforce gaps to meet current and future industry needs. Nair noted that the area is attracting new investments from across the country and around the world.

The coalition has more than doubled in size since its formation. It grew from 41 to 95 organizations in three years. Partners include Texas Instruments, GlobiTech, and Coherent. All three companies operate large semiconductor plants in the Sherman area. Texas Instruments also manufactures semiconductors in Richardson and is credited with inventing the integrated circuit in 1958.

This funding follows a $19.3 million commitment from the U.S. Department of Energy in September. That grant supported SMU's critical mineral mining project, the largest research funding for an individual researcher in the university's history. President Jay Hartzell said the federal investment demonstrates the university's ability to address challenges of national importance by bringing together research, industry, and regional partners.

Hartzell added that the hub provides an opportunity to translate innovation into economic growth. The project aims to attract and develop the next generation of talent while strengthening a critical U.S. industry.