(The Center Square) – Another semiconductor manufacturer is expanding operations in Texas on the taxpayer’s dime.
Yerico Manufacturing Inc. is expanding its semiconductor equipment materials and services facility in Elgin while receiving a $1.3 million Texas Semiconductor Innovation Fund (TSIF) grant. The company says it’s investing $13 million in the project, which is expected to create 30 new jobs.
Yerico Manufacturing Inc. first began operations in Elgin in 2002 to provide refurbish and repair services for semiconductor equipment. Its new project includes constructing a new building and expanding an existing building to add 50,000 square feet to increase production.
The facilities will encompass quartz refurbishment, manufacturing and research and development and cleaning services. The new facility is being built to produce an additional 1,000 semiconductor manufacturing equipment pieces per month upon completion. The facility that’s being expanded will increase monthly production of electrostatic chuck (ESC) and ESC components from 1,500 to 2,500, the company says.
“The TSIF grant will support the construction of new facilities and the acquisition of state-of-the-art equipment,” Yerico Manufacturing CEO and President Ihn Hong Min said in a statement. “This expansion will lead to the creation of dozens of new, local jobs in Elgin, and will improve our U.S.-based technology allowing Yerico to advance as global supplier.”
Gov. Greg Abbott praised the expansion and use of the grant, saying, “Texas is leading a new era of innovation in manufacturing. Yerico’s $13 million expansion of their semiconductor equipment refurbishment and repair facility in Elgin will help support the increased demand for chip production in Texas and around the world. With significant investments from global technology and manufacturing leaders, Texas will continue to partner with industry innovators to ensure supply chain resilience and solidify our dominance in domestic semiconductor manufacturing.”
State Sen. Charles Schwertner, R-Georgetown, whose district includes Elgin, said in a statement, “The expansion of Yerico Manufacturing is exactly what we envisioned when we passed the Texas CHIPS Act. We are strengthening our state’s leadership in semiconductor manufacturing while creating high-paying jobs right here at home. This investment not only boosts Bastrop County’s economy, it reinforces Texas’ role in securing America’s technology supply chain.”
The grant is an outworking of Abbott prioritizing Texas leading the U.S. in chip manufacturing when supply chain shortages and backlogs began under the Biden administration. In 2023, the state legislature passed Texas’ CHIPS Act, which created a new Texas CHIPS Office, the TISF fund and grant and the Texas Semiconductor Innovation Consortium, The Center Square reported.
The legislature created them to “leverage Texas’ investments in the semiconductor industry, encourage semiconductor-related companies to expand in the state, further develop the expertise and capacity of Texas institutions of higher education, and maintain the state’s position as the nation’s leader in semiconductor manufacturing.”
Critics argue the TSIF fund and grant are taxpayer-funded corporate welfare, where companies with multi-million and billion-dollar valuations are expanding operations in Texas on the taxpayer’s dime, The Center Square reported. Critics argue these companies would expand in Texas even if they didn’t receive taxpayer money because of Texas’ business friendly and low tax policies.
Prior to the Texas CHIPS Act, Texas already ranked first in the country for semiconductor manufacturing. Abbott maintains the Texas CHIPS Act “expands that pathway to ensure that Texans will be leading the way for semiconductors for decades to come.”
