Silicon Laboratories has been awarded a grant of $23 million under the Texas Semiconductor Innovation Fund (TSIF).
The funding will support Silicon Labs’ new $80m R&D facility in Austin, Texas.
Fabless semiconductor company Silicon Labs designs and manufactures chips – primarily microcontrollers and wireless system-on-chips (SoCs) and modules – for wireless technologies across a number of industries.
Founded in 1996 and headquartered in Austin, Texas, the company said its new facility will offer “cutting-edge semiconductor design and testing equipment essential for elevating R&D efforts and maintaining Texas’ technological leadership.” Silicon Labs will also construct a research lab at the site and develop a platform to support the integration of artificial intelligence (AI), 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.”
The Texas Semiconductor Investment Fund was established in 2023 after the state’s Republican governor, Greg Abbott, signed the Texas CHIPS Act into law.
Overseen by the Texas CHIPS Office – a newly formed division within the Texas Economic Development and Tourism Office in the Office of the Governor – much like the federally funded CHIPS and Science Act, the program was designed to incentivize and encourage companies to set up semiconductor research, design, and manufacturing operations domestically.
In January 2025, Texas Instruments finalized a $1.61bn funding package under the CHIPS and Science Act to support the construction of two new chip fabs, one of which will be located in Sherman, Texas.
That same month, Samsung Electronics also finalized its CHIPS Act funding agreement with the Department of Commerce. The $4.745bn funding package will support Samsung’s planned $37 billion investment in Texas, which includes the construction of two new chip fabs and an R&D center in the city of Taylor.
President Donald Trump has routinely criticized the CHIPS and Science Act, saying tariffs, not funding agreements, would be the most effective way of shoring up domestic semiconductor manufacturing.
“They already have billions of dollars,” Trump said to House Republicans during a January speech. “They’ve got nothing but money, Joe [Biden]. They didn’t need money, they needed an incentive and the incentive is going to be that they’re not going to want to pay a 25, a 50, or even a 100 percent tax. They’re going to build their factory with their own money. We don’t have to give them money.”
It’s unclear if Trump’s criticisms also apply to state-level CHIPS Acts, such as the one approved by Governor Abbott in Texas.
