Arm Inc. to spend $71 million on Texas semiconductor lab expansion

Arm Inc., a U.K.-based tech company, announced February 12 that it would spend $71 million to expand its Austin, Texas semiconductor campus to add a new lab for failure analysis. The move is expected to create 320 jobs on the site, which designs processors for mobile, cloud and data center hardware. The company

In a statement from the Texas governor’s office, governor Greg Abbott announced the state would grant Arm Inc. $4.1 million from the Texas Semiconductor Innovation Fund.

In statements, company leadership said the expansion would go towards advancing the development of AI applications. The company’s third-quarter earnings report, released February 4, indicated the company saw an increase of 26% or $1.24 billion in revenue on a year-over-year basis as it rides a wave of demand for CPUs and GPUs for use in data centers.

What people are saying

“Austin is home to Arm’s largest U.S. site and is a rapidly growing center for advanced chip design,” said Arm CEO Rene Haas. “This investment from the Governor’s Office accelerates that momentum and strengthens Texas’ position as a global semiconductor leader. We’re expanding our labs, strengthening our capabilities, and creating hundreds of new roles — building the future of compute and AI in the U.S. and developing the next generation of semiconductor talent.”

“Texas is where the world innovates,” said Gov. Abbott. “This $71 million expansion of Arm's engineering and innovation hub in Austin will create hundreds of skilled jobs and enhance Texas’ leadership in semiconductor design and manufacturing. Partnering with industry leaders, Texas is investing in the tech advances of tomorrow - today.”

“I’m excited that global companies view Texas as an appealing destination for continued investment,” said Senator Sarah Eckhardt. “Companies like Arm Inc. don’t make big investments in Texas just because they like the weather or get hooked on the BBQ. They come because we attract talent here that you simply can’t find anywhere else in the world. We can keep it that way by holding the door open to anyone who wants to lend their brilliant minds and skilled hands to building our future. Arm’s latest investment expands an essential workforce in our state and brings new neighbors who add to the vibrancy of Central Texas, so important to our ongoing prosperity.”

“For decades, Austin has invested and focused on transforming our region into a technology and innovation hub,” said Representative Donna Howard. “As a result, our community is driving the industry forward; this grant will build upon this mission by creating jobs and will spur continued capital investment in our region. This growth is not only good for Austin, but it is also good for Texas. I look forward to working with my colleagues to ensure we continue to invest in programs that will provide economic benefits at the local, regional, and state levels.”

Manufacturers investing in Texas

Cancoil USA announces new Texas heating coil factory
The heat transfer products factory will create 120 new jobs, according to the governor’s office.

Large-scale additive manufacturing company opens new headquarters and facility in Austin, Texas
Caracol's new U.S. headquarters will include an innovation space for developing alongside local manufacturers.

Race Rock expands manufacturing capacity with new Texas facility
This investment will help the company support Texas and the country’s evolving infrastructure landscape.

Investments in data center infrastructure

Siemens Energy announces $1 billion in new Mississippi plant and US expansions
The German industrial giant says it will expand facilities in North Carolina, Florida, Alabama and Texas.

Eaton to spend $50 million to open new Virginia manufacturing campus
The power management products company aims to meet demand for data center power control devices.

CEL Critical Power electronics manufacturer to spend $5.2 million on new Virginia plant
The company manufactures low-voltage power distributers, switchgear equipment and power panels.