Government
BY BEN THOMPSON
Global semiconductor company NXP exited an economic agreement with the city last fall, ending plans to invest about $291 million in its campuses. What happened NXP terminated its deal with Austin, intended to support updates to its local facilities, citing complications securing federal CHIPS and Science Act funding. An NXP spokesperson confirmed the company had sought CHIPS program support under a wider strategy to build its global footprint, but has stopped pursuing that federal money. Despite ending that process, NXP could still end up building its Central Texas presence. The com- pany has applied for tens of millions of dollars from the Texas Semiconductor Innovation Fund for local projects, according to city records. Austin backs the company’s efforts, Economic NXP ends Austin economic deal
NXP facilities in Austin
AUSTIN TECHNOLOGY AND MANUFACTURING CENTER
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OAK HILL
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W. WILLIAM CANNON DR.
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Development Department spokesperson Carlos Soto said, while the regional economic partnership Opportunity Austin is taking the lead on local endorsements for the state dollars with city support. NXP officials previously said the company’s Austin facilities needed modernization in order to continue running, and that the campuses could eventually shut down and see operations moved internationally without those improvements. The company didn’t confirm the current outlook for staffing and operations at the local sites.
How we got here Austin leaders voted in favor of the incentive deal supporting NXP’s investment of $148.6 million at its Oak Hill facility and $142.2 million at its east side manufacturing center in 2023. More than 50 jobs would’ve been added between both sites. The city was projected to collect more than $1.5 million through the five-year agreement. NXP also committed to funding local child care services. Since the agreement was terminated before any proposed activity took place, no local benefits were realized.
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