Tech
How Texas Became The American Chipmaking Hub
Texas has taken the top spot as the center of U.S. chip manufacturing. The Lone Star State now has more semiconductor fabrication plants than any other state, and six new projects will bring an estimated $61 billion of investment and 8,000 jobs. The integrated circuit was invented in Texas more than 60 years ago, and chip companies are attracted by low taxes, plentiful land, and the $1.4 billion Texas CHIPS Act passed in June. CNBC got a rare look inside three massive chip fabs and toured the two biggest projects under construction: Texas Instruments’ $30 billion site north of Dallas and Samsung’s $17 billion fab near Austin.
Correction: This story has been updated to reflect the correct size ranking of Texas, and details about the invention of the transistor.
Chapters:
00:00 — Introduction
01:58 — Birthplace of the integrated circuit
05:12 — Attracting chip companies
08:36 — Most fabs in the U.S.
12:19 — Water, power and downturn
Produced and Shot by: Katie Tarasov
Edited by: Evan Lee Miller
Supervising Producer: Jeniece Pettitt
Animation: Jason Reginato, Andrea Schmitz
Additional Camera: Katie Brigham, Sydney Boyo, Andrew Evers
Additional Footage: Apple, ASML, Getty Images, KCBD, Intel, NXP, Panda Power Funds, Samsung, Texas Instruments, TSMC
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How Texas Became The American Chipmaking Hub
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Unstoppable demand for AI is leading to a capacity crunch on factory lines at the world’s leading chip manufacturer, Taiwan Semiconductor. And it could put a chokehold on AI’s ability to scale. Analysts tell CNBC that Nvidia, Apple, Broadcom, AMD and others are locked in an “extremely fierce” competition to get their GPUs, CPUs and custom AI chips made at TSMC. Capacity can’t come online fast enough, despite TSMC’s rush to build new fabs in Taiwan, Japan and Arizona, where has expanded investment to $265 billion. The strain has made one man at TSMC “the most popular person on the planet,” as chip start-ups and big name CEOs visit Taiwan to ask him for wafer allocation. It’s also created a rich opportunity for Intel, as customers look to the long-struggling foundry arm of the U.S. chip manufacturer for a second source.
Chapters:
0:00 Introduction
2:06 ‘Most popular person on the planet’
6:54 Making room for smaller players
9:10 Can new U.S. fabs ease the crunch?
Producer and Reporter: Katie Tarasov
Edited by: Matt Soto, Andrew Evers
Camera: Eddie Temborski, Robert Lampe, Evan Reinhardt
Senior Director of Video: Jeniece Pettitt
Animation: Jason Reginato, Emily Park
Additional Footage: Cerebras, D-Matrix, Getty Images, Intel, Nvidia, OpenAI, SpaceX, TSMC
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Why There’s An ‘Extremely Fierce’ Battle For TSMC’s Limited Chip Manufacturing Capacity
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Warner Music Group, the third-largest music label by market share, is tapping into the South Asian music movement with its latest venture.
CNBC’s Laya Neelakandan explains.
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Micron’s hometown of Boise, Idaho has a growing crop of newly minted millionaires.
The AI-driven memory boom is showing up in the form of job growth, new construction projects, a bustling dining scene and an influx in new residents.
CNBC’s Katie Tarasov explains. Find the full report in related video.
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Half of single Americans say they are going on fewer dates or choosing less expensive activities because of rising costs, according to BMO’s 2026 survey.
But, the cost of dating itself is only part of the story. For millions of users, finding a date means paying for the apps.
Watch the full story in related video.
source
Billions of dollars have been raised for this year’s midterms elections, with a significant portion coming from big name tech billionaires in the cryptocurrency, artificial intelligence and online gambling sectors. Megadonors’ contributions are overwhelmingly behind Republicans in the 2026 midterm election, with 14 of the 20 largest donor groups exclusively or nearly exclusively backing GOP candidates or outside groups. CNBC’s Luke Fountain reports.
Chapters:
00:00 – 00:56 Introduction
00:57 – 03:37 Chapter 1 – Republican-aligned donors
03:38 – 05:07 Chapter 2 – Democrat-aligned donors
Reporter: Luke Fountain
Produced and Edited by: Romy Tarantino
Animation: Jason Reginato, Emily Park
Additional Camera: Macklin Fishman, Andrew Evers
Supervising Producer: Shawn Baldwin
Additional Footage: Getty Images
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About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
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The Megadonors Funding The 2026 Midterms
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@dinosoeren
December 19, 2023 at 12:04 pm
1700-2500 gallons of clean drinkable water per minute… so that a company with dwindling sales can manufacture chips that power Electric Vehicles (EVs) which… still largely depend on fossil fuels for power, got it. all makes sense, nothing to see here, move along to the next episode of humans ensuring their timely demise…
@smithhoowe
December 19, 2023 at 12:04 pm
The problem is its Texas, basically hell for anyone not white, male, and straight.
@fareast20
December 19, 2023 at 12:04 pm
Funny how the mighty America is scare of these stupid Chinese farmers. 😂😂
@hooker4749
December 19, 2023 at 12:04 pm
you would think texas would fix the chip missing in their brains
@brandcannon
December 19, 2023 at 12:04 pm
Top chip makers because we have all the good salsa… and of course, queso!
@jallen1227
December 19, 2023 at 12:04 pm
Why because of acreage or ports ?
CA has both plenty of space (just outside of Bay Area) and 3 of the largest ports in the country.
CA fumbled in the late 1980s and early 1990s particularly AMD and in lieu of making it easy disincenivitzing Intel to setup locations in Ireland, Portland, etc. Prior to SAS, Texas only really had TI.
@nunyabiz1771
December 19, 2023 at 12:04 pm
Do Georgia one and Republicans who cried about passing inflation investment Act are the ones who are reaping the benefits of it the obstructionist who didn't want it are now benefiting from it that's what just happened this shouldn't even be allowed you obstructed you shouldn't be allowed to do anything with it but the Democrats failed anyway they don't know how to benefit from their own policies if there's too stupid to do that then maybe they shouldn't rule after all
@paulbenjamin639
December 19, 2023 at 12:04 pm
Texas is becoming the leading hub of everything for 2 simple reasons, good people live here and we tax cooperate land value (not other ineffective business taxes).
@azimuth9819
December 19, 2023 at 12:04 pm
Ooo get ready to be barely 3% of the market woooo+!
@Jamalsneed44
December 19, 2023 at 12:04 pm
Why is Greg abbot always sitting down? I’m starting to think he’s lazy
@jiminthe603
December 19, 2023 at 12:04 pm
The tax rates shown @5:29 are misleading for NH which has no state tax on individual earned income.
The 4% shown in the chart applies only to dividends and interest.
@txdave4215
December 19, 2023 at 12:04 pm
I’m glad we’re building chips but we don’t deserve this opportunity with all of our politicians bashing the chip act and voting against it. As always they wanna take credit for something they voted against.
@KdiazY
December 19, 2023 at 12:04 pm
With all investment on chips fabs at us/europe once come to market are able to compete with tsmc/ samsung that have their lower production cost at asia? At the end day they might go to same market 🤔
@Toxic9813
December 19, 2023 at 12:04 pm
not for long! Columbus Ohio coming after that crown. Intel's new plant is 6 fabs
@JasPlun
December 19, 2023 at 12:04 pm
Texas gained all of this because Democrats ran them off from over regulation and taxes. It is that simple!
@pluggedev8464
December 19, 2023 at 12:04 pm
So, to recap a state that has voted historically Republican has attracted many businesses to leave other states and create jobs and income for that states residence based on business friendly policies. Meanwhile it’s estimated thousands of companies have left or closed up shop in everyone’s favorite Democratic state California.
@mr.chupacabra7172
December 19, 2023 at 12:04 pm
Shoutout to X-FAB!
@carrowcobb-cu2yh
December 19, 2023 at 12:04 pm
We need to strengthen, climate proof, and EMP proof our Texas electric grid.
@LokoGee
December 19, 2023 at 12:04 pm
What they don't mention is the wages are 7.25 an hour most likely in a non air conditioned warehouse with 10-12 hour shifts 6 days a week. That's garbage. I was making 7.25 an hour in 2006 as a senior in highschool. Texas is a failed garbage state. Marijuana is illegal and you will go to jail for it, Women have no say over their bodies and cannot have abortions or they'll go to prison. Texas must be liberated. Billion dollar companies love it there because they can make huge profits while the average Joe is told to be happy working at HEB. GTHOH Down with Texas 🚫
@AntSol13
December 19, 2023 at 12:04 pm
What would I major in if i wanted to work for one of these companies?
@bernardsimsic9334
December 19, 2023 at 12:04 pm
they have nearly slave labor rules that's how !there is no secret.
@Padoinky
December 19, 2023 at 12:04 pm
Texas doesn’t have sufficient water supplies and lacks a cheap and reliable electricity grid (aka ERCOT). Whereas Micron is investing $100 billion, over 20 yrs, to build a 4 bldg campus for chip fabrication, in central NY, due to its plentiful supply of water and it’s reliable and abundant hydropower (aka Niagara Falls) capacity controlled by the state (NYSPA)…
@earlwilliams5473
December 19, 2023 at 12:04 pm
Hard to believe that it takes something so vast and complicated to make something so small. God made humans and everything thats needed for humans to descoer a microchip.
@jallen1227
December 19, 2023 at 12:04 pm
Because CA fumbled badly (and yes, I understand the incredible history of TI).
@HanHattoriHanzo
December 19, 2023 at 12:04 pm
Let’s be real people, white people, black people, mexican people CANNOT make these micro processors. If they KNEW how to they would have did it already. It’s a culture thing as well. Americans are sloppy and pay no attention to finite details.
“Designed in California, built in China”. Smart to think about, but not smart enough to do it.
$4 BILLION DOLLARS and any damn politician will say America can do it. Give a college/university nearly a BILLION DOLLARS and they’ll say the same damn thing.
Asian people are the only ones who are mentally and physically capable to do these extremely technically things.
@magicmarie8403
December 19, 2023 at 12:04 pm
Tax breaks and loose pollution policies. That’s why companies want to come to TX.
@CrotalusHH
December 19, 2023 at 12:04 pm
Texas has been a leader in chip manufacturing since the mid 70s. TI and many others were my customers. It shrunk quite a bit in the 90s, but it's booming again now.
@peteharper3614
December 19, 2023 at 12:04 pm
Now probably wouldn't be the best time to point out that TIs biggest assembly and test operations are in China and the Philippines. TI has almost no assembly and test capability in the USA. All those TI Texas wafers are headed to Asia. Until we bring assembly and test back to the USA we are still dependent on China.
@JB-qt3wo
December 19, 2023 at 12:04 pm
Thank god for gregg abbot!! He’s bringing in 200,000 people a month into Texas!! I can’t wait to be able to hire them for less money than i’m paying my native workers!! I love it! Luckily i live in a gated community so I won’t have to deal with the crime. Man it’s nice to be Rich. Thanks Gregg!!
@twc9000
December 19, 2023 at 12:04 pm
The power outage in 2021 was caused by relying on unrealiable wind and solar energy. So, Infineon decides to rely totally on wind and solar. Either they are lying (most probably) or they will be paying a lot more for unrealiable energy.
@m-jay356
December 19, 2023 at 12:04 pm
About time we bring chips back home to Texas!
@johnwilliams9498
December 19, 2023 at 12:04 pm
These plants use a lot of water i mean a lot.
@bigdickblack1505
December 19, 2023 at 12:04 pm
I just checked the top 10 chip-making companies in the world & TI is # 10. Of the remaining nine five are from California, one from Taiwan, one from Idaho, & two from South Korea. Texas has a long way to go.
@andrewsolis2988
December 19, 2023 at 12:04 pm
No liberal BS and taxes. Not difficult to understand
@aleonyohan6745
December 19, 2023 at 12:04 pm
You know you're doing something right when all these foreign companies are wanting to build their factories in the US.
@TXgeopg
December 19, 2023 at 12:04 pm
Well done and informative!!!
@American_Bumpkin
December 19, 2023 at 12:04 pm
Move over California, Texas coming in hot on the scales
@kylerider7125
December 19, 2023 at 12:04 pm
Mm Phoenix
@oldschoolman9878
December 19, 2023 at 12:04 pm
I live near the second large Samsung factory in Austin, I can see the steam from their smokestacks from my neighborhood in winter.
@tonysu8860
December 19, 2023 at 12:04 pm
This video said that Apple designs chips in TX.
I don't think that's right… Most if not all Apple's design work is done in Caifornia and then manufactured mostly in TSMC foundaries in Taiwan although plants are being built elsewhere like in TX.
@ajford-arausa8328
December 19, 2023 at 12:04 pm
To give people a idea how big Texas is El Paso is closer to LA than it is to are Texas own capital and
@mrmmayminica
December 19, 2023 at 12:04 pm
No that’s a lie you might be for the east coast but not for the country
@PanioloBee
December 19, 2023 at 12:04 pm
Abilene, TX would be a nice location for a chip manufacturer. We need something more than another TexMex!
@MrCarloszeca
December 19, 2023 at 12:04 pm
The CHIPS Act prohibits funding recipients from expanding semiconductor manufacturing in China and countries defined by US law as posing a national security threat to the United States. The CHIPS and Science Act is a U.S. federal statute enacted by the 117th United States Congress and signed into law by PRESIDENT JOE BIDEN on August 9, 2022. The act provides roughly $280 billion in new funding to boost domestic research and manufacturing of semiconductors in the United States.
@globalwarming4786
December 19, 2023 at 12:04 pm
America needs to not allow such things to be done in Texas or ANY state with criminal republicans running it
@mikeanderson9266
December 19, 2023 at 12:04 pm
Arizona a better fit for chips!
@ojn4972
December 19, 2023 at 12:04 pm
Texas has the worse electrical grid. And now they are the "Chipmaking Hub" ?? lmao I wonder how those plants receive power… MERICA!
@JuanMorales-ci1yf
December 19, 2023 at 12:04 pm
Texas 💪🏽💪🏽💪🏽