NXP Semiconductors is considering a $2.6 billion expansion in Austin, creating up to 800 jobs, in a move that could add even more fuel to the thriving Central Texas high-tech sector.

The potential expansion is the latest major project in the Austin area’s pipeline.

Applied Materials announced in March that it is considering Hutto for a $2.4 billion R&D center, while Infineon Technologies announced in February that it is considering Austin for a $700 million expansion.

NXP Semiconductors, based in the Netherlands and with two manufacturing plants in Austin, is seeking tax breaks from the Austin Independent School District under the state’s Chapter 313 incentive program for the proposed expansion.


The amount was not specified in an initial presentation to the district’s board on Tuesday night, but previous incentives agreements from Texas school districts for similar Chapter 313 deals have been in the tens of millions of dollars.

The CHIPS act, which would provide more than $50 billion in federal funding to the semiconductor industry across the United States to offset the cost of manufacturing facility construction, has not received final approval. However, it has bipartisan support and has passed both the House and Senate.

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NXP is looking into other locations for the project but they did not specify where. A final decision on the location is expected this year, with construction set to begin in 2024 and the facility operational by late 2026.

The company also intends to seek incentives from the city of Austin and from Travis County, they said.

NXP’s representatives said jobs created by the company’s potential expansion here would pay an average annual salary of more than $100,000.

NXP, which had a revenue of $11 billion in 2021, has about 4,000 employees in Austin, where it has multiple facilities, including two chip fabrication plants. Globally, it has more than 29,000 employees.

Source: Statesman

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