U.S. Semiconductor Needs Fuel Hardware Starts in Third Quarter

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

Heavy demand for semiconductors is driving much of the near-term development in the U.S. semiconductor and computer sector, with tens of billions of dollars in much-anticipated developments set to begin construction before the end of September--particularly in Texas, where a single project accounts for more than half of the related investment value.

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Texas Leads in Semiconductor Buildouts

Domestic producers of semiconductors and other crucial computing equipment are struggling to keep pace with the massive buildout in data centers and the growing use of artificial intelligence (AI) in routine activities. Industrial Info Resources is tracking more than $19 billion worth of projects in the U.S. semiconductor and computer sector that are set to begin construction in the third quarter, about 65% of which is attributed to projects in Texas.

According to Industrial Info Resources data, just a handful of developments put Texas at the top of the list for project kickoffs through September, led by Substrate Incorporated's semiconductor research and development facility in Bryan, near Texas A&M University's Rellis Campus. The project received a $113.7 million grant from the Texas Semiconductor Innovation Fund (TSIF), an incentive program established in June 2023 "to encourage the continued leadership of Texas in semiconductor research, design and manufacturing," according to the Office of the Texas Governor.

The project, currently set to be completed in early 2028, will include a "skilled trade lab" to train A&M students, according to the university. Industrial Info Resources offers more information on the facility in its Global Market Intelligence (GMI) Industrial Manufacturing Plant and Project databases, where readers can find details--including key contacts, investment values and necessary equipment--in a plant profile and project report.

Other Texas projects include Applied Optoelectronics Incorporated's (AOI) revamp of its FAB 3 plant at its complex in Missouri City, just south of Houston. The company hopes to boost production of laser diodes and optical transceivers, which are used widely in high-speed fiber-optic equipment and everyday consumer electronics. Readers can learn more from a plant profile and project report.

Optical transceivers, in particular, are among the products growing in demand as data-center buildouts multiply and seek newer components. "As data centers grew and networking speeds continued to climb, copper stopped being an effective solution over the distances involved," AOI explains on its website. "That's when optics started moving inside the data center. AOI was an early innovator in this transition, developing optical transceivers specifically for this environment."

By the Numbers

• More than $19 billion: Total value of U.S. semiconductor and computer projects that are set to kick off in the third quarter
• 65%: Share of the total investment that is attributed to projects in Texas

Hardware from the Heartland

The largest semiconductor-dedicated project after the Texas A&M project that is set to begin construction in the coming quarter is Integra Technologies Incorporated's manufacturing plant in Bel Aire, Kansas. Integra won support for the project in 2023 from the Kansas State Finance Council, which granted it $304 million in taxpayer-funded incentives over 10 years; two years later, Integra was purchased by Micross Components, which caters to aerospace, defense, medical and industrial markets.

JE Dunn Construction Group Incorporated is serving as general contractor on the Bel Aire project, currently set to wrap in the first quarter of 2028. Readers can consult a plant profile and project report.

Manufacturers of other computer components are boosting their output of products with growing demand. Schweitzer Engineering Laboratories Incorporated is preparing to expand capacity at its plant in Moscow, Idaho, which produces printed circuit boards, while OLEDWorks LLC expects to add equipment to its facility in Rochester, New York, which makes LED screen displays for the defense, automotive and medical industries. Readers can learn more from detailed reports on the Moscow and Rochester projects.

The Industrial Info Resources GMI Project and Plant databases offer a full list of detailed reports for projects mentioned in this article, and a full list of related plant profiles.

Industrial Info Resources also offers a full list of reports for projects in the U.S. semiconductor and computer sector that are set to begin construction in the third quarter.

Key Takeaways

• Heavy demand for semiconductors is driving much of the near-term development in the U.S. semiconductor and computer sector.
• A project at Texas A&M University is the biggest investment in the sector that is set to kick off before the end of September.
• The massive buildout in data centers is driving demand for newer computing components, such as optical transceivers.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).