Texas is doubling down on its semiconductor ambitions, with Governor Greg Abbott announcing a $15.2 million grant to Tekscend Photomask Round Rock Inc., part of a broader push to cement the state’s position as a chip manufacturing powerhouse.
The funding, awarded through the Texas Semiconductor Innovation Fund (TSIF), will support a major expansion of Tekscend’s photomask production capacity in Round Rock. The company plans a $223 million capital investment that’s expected to create 50 new jobs and increase facility capacity by more than 40 percent.
“Texas is where the integrated circuit began and where the future of the semiconductor industry is being built,” Governor Abbott stated during the announcement.
Homegrown Semiconductor Innovation
Tekscend Photomask is no newcomer to Texas. The company has operated in Round Rock since 1987, establishing deep roots in the region’s tech ecosystem. The expansion will modernize equipment and extend capabilities to the 12nm technology node for chips used in artificial intelligence, automotive applications, Bluetooth, Wi-Fi, microcontrollers, and sensors.
“Since 1987, Tekscend Photomask has been proud to call Round Rock home, supporting the Texas and U.S. semiconductor industry with world-class photomask manufacturing,” said John Nykaza, President of Tekscend Photomask Round Rock, who emphasized the importance of the investment in strengthening critical supply chains.
Why photomasks? They’re essential components in semiconductor manufacturing — essentially stencils that allow specific patterns to be etched onto silicon wafers during the chip fabrication process. As devices get smaller and more powerful, these components become increasingly critical to advanced manufacturing.
Building a Quantum Future
The Tekscend grant isn’t the only recent investment from the TSIF. Governor Abbott has also approved a $4.8 million grant to the Texas Quantum Institute at UT Austin for establishing QLab, a quantum-enhanced semiconductor metrology facility that promises to push boundaries in chip research.
“Texas is the new frontier of innovation and UT Austin is where world-changing discoveries in quantum research and development are being made,” Abbott remarked about the quantum initiative.
Workforce Development Critical to Growth
But building facilities is only half the equation. Texas is also investing heavily in workforce development to staff these expanding operations.
Texas State Technical College received a $3.5 million TSIF grant to expand semiconductor and advanced manufacturing workforce training programs. The funding will support new equipment and curriculum development at TSTC’s Williamson County campus, particularly for the Accelerated Semiconductor Technician Training Program and Advanced Manufacturing Technology – Semiconductor program, according to state officials.
“It is crucial to us because of the expansion of Samsung in Taylor and the growth,” explained Kelly Coke, provost of TSTC’s Williamson County campus, who noted the timing of the grant coincides with major industry expansion in the region.
The workforce investment comes as Tekscend Photomask was named Workforce Solutions Rural Capital Area’s 2025 Local Employer of Excellence for leadership in innovation, workforce development, and regional semiconductor growth, local economic development groups have reported.
Strategic State Investment
These grants are part of Texas’ broader semiconductor strategy. The Texas Semiconductor Innovation Fund provides financial support for manufacturing, research, development, job creation, and advanced manufacturing throughout the state, as outlined by economic development resources.
The investment in Tekscend’s expansion represents one of the largest commitments yet, with the $15.2 million grant supporting a project more than 14 times that size in private capital. The state has also confirmed the $3.5 million extension to Texas State Technical College.
All told, Texas appears to be positioning itself at the center of America’s semiconductor resurgence. With a combination of manufacturing capacity, research facilities, and workforce development, the state is creating an ecosystem that spans from basic research through production.
As chipmaking increasingly becomes a matter of national security and economic competitiveness, Texas’ early moves may prove prescient. The question now is whether other states will follow with similar comprehensive approaches — or if the Lone Star State will maintain its silicon advantage.
