Texas Semiconductor Innovation Fund (TSIF)

About this programme

The Texas Semiconductor Innovation Fund (TSIF) is a state grant program created in June 2023 through House Bill 5174, the Texas CHIPS Act. Its purpose, written into Section 481.652 of the Texas Government Code, is to keep Texas ahead in semiconductor research, design and manufacturing.

The fund started with a $698 million appropriation in June 2023 and received another $250 million in June 2025, for a total of about $948 million. Money is awarded as grants to state entities, universities, and private businesses with an established presence in Texas.

The Texas Semiconductor Innovation Consortium (TSIC) Executive Committee oversees the fund, with day-to-day administration by the Texas CHIPS Office inside the Economic Development and Tourism Office (EDT) in the Office of the Governor.

How it works

Grants to private businesses are reimbursement-based: the applicant spends its own money first, then submits documentation to the Office of the Governor (OOG) to be reimbursed for authorized actual expenditures.

Eligible budget categories are Equipment (tangible property with a useful life over one year and an acquisition cost of $5,000 or more per unit), Construction costs (new buildings or renovations, including fixed equipment, but not land acquisition or off-site improvements), and Direct operating expenses (day-to-day costs tied to the grant project not covered by the other two categories).

Equipment bought with grant funds stays titled to the applicant, but the applicant must tag it, keep a current inventory, and keep its primary use tied to grant purposes; it cannot be used as loan collateral.

Applications are reviewed and scored on capital investment, jobs created, financial strength, business history, sector fit, public and private financial support already committed, and overall project impact. If a grant offer of $1,000,000 or more is extended, the recipient must file a Disclosure of Interested Parties Form (Form 1295) with the grant contract, unless publicly traded.

Who can apply

The applicant must be a business entity, state entity, or institution of higher education with an established presence in Texas. For businesses required to register with the Texas Secretary of State to transact business, established presence means being registered to do so. For out-of-state entities not required to register, it means maintaining a permanent physical presence in Texas or registering under section 9.003 of the Texas Business Organizations Code.

There is no requirement to already be pursuing federal CHIPS and Science Act funding, and having applied for federal funds does not disqualify an applicant.

Job creation and capital investment are scored but are not disqualifying if absent: a project without new jobs or capital investment can still apply. Design projects seeking to reimburse employee salaries are allowed, and the TSIC says it especially welcomes design projects that add capital expenditures on top of salaries.

A local economic development incentive is not required, but the application needs the signature of an authorized community representative (a local or regional economic development organization, city manager, or county administrator) confirming the community knows about and supports the project.

Projects already announced publicly are not barred from applying.

How to apply

1. Contact the Economic Development & Tourism Office before submitting; applicants are encouraged to do this first.
2. Complete the Private Sector application form (a fillable PDF covering applicant and community certifications, business background, project summary, projected capital investment, committed funding sources, TSIF request and category breakdown, job creation figures, local incentive information, permits, financial data, and grant project type).
3. Attach the required supporting documents (see Documents).
4. Email the complete application to tsif@gov.texas.gov. The EDT does not accept non-electronic (paper/mail) applications, and will not accept draft or incomplete applications.
5. Applications are accepted on a rolling basis with no deadline, and are processed in the order received once determined complete. The EDT may request supplemental information, which must be provided within the timeframe EDT specifies.
6. If approved, the applicant executes a grant contract with the OOG before receiving reimbursements.

Documents you’ll typically need

• Certification of Application signed by the Applicant
• Certification of Application signed by the Community representative
• Articles of Incorporation
• Evidence of good standing in the state where the business was formed (a Certificate of Status if formed in Texas)
• Franchise Tax Account Status showing 'Active' for the applicant and all currently operating parent or subsidiary entities, from the Texas Comptroller of Public Accounts
• Documentation of committed sources of funding
• The TSIF request amount and any other state assistance request
• Audited financial statement(s) for the applicant, covering the three most recent consecutive years (or all years in business if fewer than three)
• Information on any related federal fund application, if applicable
• Professional headshots and narrative-form biographies for business entity and facility leadership
• Form 1295, Disclosure of Interested Parties, from the Texas Ethics Commission (not required for publicly traded companies), required only if an offer of $1,000,000 or more is made

Frequently asked

More funding in Texas

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Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.