Workers scan silicon wafers for defects at Tower Semiconductors’ fabrication plant in Westover Hills in January. The company produces computer chips that are used in several industries, including automotive and smartphone production.
This week, Congress is expected to pass a bill that allocates $52 billion in subsidies for companies that build semiconductors in the United States. It’s an effort to compete with China and other countries that are increasingly seeking a competitive edge in the industry. It would also provide a 25 percent investment tax credit for investments in semiconductor manufacturing.
“If passed, the legislation would further improve our competitive advantage in an increasingly important semiconductor industry, spur additional investment in our manufacturing capability and allow Texas to add even more high-income, highly skilled jobs to our workforce,” Phelan wrote in a letter last week to McCaul, the highest-ranking Republican on the House Foreign Affairs Committee.
Since then, Intel announced plans to buy Tower — which has fabs around the world — for $5.4 billion. Executives of both companies said the deal could close by early 2023.