AUSTIN, Texas — Austin’s Silicon Laboratories has received a $23.3 million grant from the Texas Semiconductor Innovation Fund (TSIF), Gov. Greg Abbott announced on Wednesday.

The grant will help fund new research and development and is expected to create more than $80 million in capital investment.

“Innovation has no endpoint, but it always begins with an idea,” said Texas Gov. Abbott. “Today, more of those ideas begin in Texas. Silicon Labs’ $80 million investment to expand their research and development operations in Austin will further cement Texas’ position as a trailblazer in technological advancement and keep Texas at the epicenter of the semiconductor industry. Thanks to companies like Silicon Labs, we will continue to lead the world in innovation as we build an even stronger and more prosperous Texas than ever before.”

Silicon Labs, headquartered in Austin, designs and develops chips, providing wireless technology and integrated hardware and software across a wide range of industries.

The company’s new operations will include investment in semiconductor design and testing equipment needed for research and development, Gov. Abbott said. It will also include the construction of a research lab and the development of a platform for integrating artificial intelligence machine learning accelerators and other technologies.

“As a Texas-born company, Silicon Labs is dedicated to leaving a lasting legacy by accelerating the state’s role as a global technology leader,” said Silicon Labs President and CEO Matt Johnson. “Texas CHIPS Act funding will propel Silicon Labs, a fabless semiconductor company, to push the boundaries of wireless chip design and R&D while fostering innovation, job creation and economic growth.”

State Sen. Sarah Eckhardt said the investment in Silicon Labs is another step forward in Texas’ leadership in the global semiconductor industry.

“I also celebrate it as a direct investment into the economy of our community, promising that Austinites will have a direct role to play in our future prosperity as a state from the cutting-edge of innovation,” Eckhardt said.

Abbott signed the Texas CHIPS Act into law in 2023 to establish the TSIF, an incentive program to encourage Texas semiconductor research, design and manufacturing.