SMU-led hub secures $29M to build Texas and Oklahoma chip infrastructure

The Texoma Semiconductor Tech Hub, a regional coalition led by Southern Methodist University, received nearly $29 million to expand its capacity in North Texas and southern Oklahoma. The funding package is designed to build physical infrastructure, train workers, and help companies move chip designs from prototype to market.

The U.S. Department of Commerce provided nearly $24 million of the total, while other sources contributed $4.8 million. Of the federal share, $13 million is allocated for shared infrastructure and the creation of fablets. These are smaller, lower-cost facilities for prototyping that allow researchers and startups to access design, manufacturing, and testing equipment without the expense of full-scale fabs.

J.C. Chiao, an SMU professor of electrical and computer engineering who helped form the hub, stated that the resources address critical needs as the industry expands. The remaining federal funds are split between $6 million for workforce education and $5 million to support entrepreneurs in commercializing technology. Chiao noted the investment will make the region more competitive for semiconductor investment and strengthen the domestic supply chain.

The hub operates as one of 31 tech hubs established by the Commerce Department in 2023, and one of four focused specifically on semiconductors. Its partners include major manufacturers such as Texas Instruments, GlobiTech, and Coherent. These companies maintain large operations in the Sherman area, with Texas Instruments also producing semiconductors in Richardson.

Suku Nair, SMU's vice provost for research, emphasized the need to address workforce gaps as the region attracts global investment. The hub plans to use artificial intelligence and digital twin technology to train and upskill workers. Nair said proactive talent development is necessary to meet current and future industry demands.

Since its establishment three years ago, the coalition has grown from 41 to 95 member organizations. This expansion follows a $19.3 million commitment from the Department of Energy in September for SMU's critical mineral mining project. That award remains the largest individual research funding in the university's history, linking semiconductor production to the extraction of essential raw materials.