HB 5174 by Bonnen: Creation of the Texas Semiconductor Innovation Consortium

HB 5174 seeks to establish the Texas Semiconductor Innovation Consortium (TSIC) and the Texas Semiconductor Innovation Fund (TSIF). TSIC would be used to leverage the expertise and capacity of institutions of higher education, industry, and non-profit “stakeholders” to develop a strategic plan to ensure ongoing semiconductor innovation, sustain Texas’ leadership in semiconductor research, design, and manufacturing; attract public and private investment in Texas related to semiconductors; identify and expand opportunities for workforce training and development related to semiconductors; and establish a forum for public and private stakeholders across the semiconductor manufacturing industry with Texas to focus on education, research, and commercial production. The TSIF would be utilized to provide appropriations to state entities and institutions of higher education as matches for semiconductor manufacturing and design projects, and award grants to business entities with an established presence within the state of Texas to encourage economic development related to semiconductor manufacturing and design. HB 5174 is estimated to have a negative impact of $1.7 million through the biennium and about $830k every year thereafter. Though Texas should absolutely be concerned about ensuring they maintain hegemony in producing semiconductors, instituting a corporate welfare program to do something the free market can do better, is not the right answer. For this reason, TFR opposes HB 5174.