The first Texas Semiconductor Innovation Fund (TSIF) grant of $4.1 million has been awarded to Richardson-based Texoma Semiconductor Tech Hub member IntelliEPI for its new 30,000-square-foot semiconductor wafer production facility in Allen.

“This TSIF award underscores the critical importance of our advanced compound wafer technologies, along with TSIF’s strategic goals for semiconductor innovation,” Dr. Yung-Chung Kao, IntelliEPI’s CEO and board chairman, said in a statement. “The funding will not only expand our production facilities but also solidify the state of Texas’ position as a key hub for compound wafer manufacturing, a critical need for America’s national and economic security.”

The facility is expected to create more than $41 million in capital investment and nearly triple the company’s annual wafer production, Gov. Greg Abbott’s office said.

Founded in 1999 as Intelligent Epitaxy Technology, Inc., IntelliEPI also has an office in Taipei City, Taiwan. 

IntelliEPI’s management-team [Photo: IntelliEPI]

“Texas is the No. 1 state for semiconductor manufacturing, leading the nation as the top exporter of semiconductors and other electronic components for the last 13 years,” Abbott said in a statement. “I congratulate IntelliEPI on this $41 million investment in a new wafer production facility in Texas, nearly tripling their annual wafer production and contributing millions to the Texas economy. Thanks to companies like IntelliEPI, Texas will continue to lead the nation in critical semiconductor manufacturing capacity while developing the technologies of tomorrow.”

IntelliEPI manufactures and markets epitaxy-based compound wafers that are used in telecommunications, photonics, radio frequency and microwave technologies, and other high-performance applications. The company is the only domestic manufacturer of epitaxy-based compound wafers, and Abbott said that IntelliEPI will further modernize their epitaxy reactors in Texas.

‘Texas means business’ when it comes to CHIPS

Last year, Abbott signed into law the Texas CHIPS Act establishing the TSIF as well as the Texas Semiconductor Innovation Consortium.

“As the Senate sponsor of the Texas CHIPS Act, I’m proud to have played a pivotal role in establishing the TSIF, which is now catalyzing significant investments like IntelliEPI’s new facility,” District 17 State Sen. Joan Huffman, chair of the Senate Finance Committee, said in a statement. “This fund not only supports job creation and economic growth but also fortifies Texas’s leadership in semiconductor innovation, ensuring our state’s prosperity for generations to come.”

District 17 includes portions of Brazoria, Fort Bend, and Harris counties.

“I’m proud of the work the Texas Semiconductor Innovation Consortium has done to support Texas-based companies,” said District 24 State Rep. Dr. Greg Bonnen, chair of the House Appropriations Committee. “This grant will assist IntelliEPI in expanding fabrication and allow them to continue to lead the market in wafer production.”

“Texas means business when it comes to securing the future for technological advancement,” said State Sen. Angela Paxton, who represents Allen. “I’m thrilled to welcome IntelliEPI to Allen.”

The Texas Semiconductor Innovation Fund is an incentive program to encourage the continued leadership of Texas in semiconductor research, design, and manufacturing.

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