Gov. Greg Abbott announced that the state has awarded a $3.9 million grant through the Texas Semiconductor Innovation Fund (TSIF) to Schunk Xycarb Technology Inc. to support an expansion of its Georgetown production facility.
State officials said the project is expected to create 25 new jobs and generate more than $42 million in capital investment.
Abbott said the expansion will help strengthen a critical supply chain for semiconductor manufacturers operating in Texas while creating additional high-skilled jobs in Central Texas.
“Texas is the premier manufacturing powerhouse of the country,” Abbott said in a June 18, 2026, statement. “With this expansion of their production facility in Georgetown, Xycarb will further strengthen an essential supply chain for semiconductor manufacturers in Texas and create more high-skilled jobs in the region.”
Xycarb, a member of the global Schunk Xycarb Group, manufactures and refurbishes silicon carbide-coated graphite, quartz, ceramic, and silicon components used in semiconductor wafer processing.
According to the governor’s office, the expansion will double the facility’s square footage, increase production and cleanroom capacity, and add new automation capabilities.
Xycarb President Ulrich von Hülsen said the investment supports efforts to build a stronger domestic semiconductor ecosystem.
“This TSIF award underscores the critical importance of building an ecosystem of technology companies supporting leading fabs here in the United States,” von Hülsen said. “The funding will not only expand our production and engineering facilities but also reconfirms the State of Texas’ position as a key region for specialized companies providing a sustainable economic outlook for the national semiconductor industry.”
State Sen. Charles Schwertner (R-Georgetown) praised the project, calling it a boost for the local workforce, economy, and technology manufacturing sector.
The grant is funded through the Texas Semiconductor Innovation Fund, which was created after Abbott signed the Texas CHIPS Act into law in 2023. The program is administered by the Texas CHIPS Office and is designed to encourage semiconductor-related companies to expand operations in Texas, support research and development, and maintain the state’s leadership in semiconductor manufacturing.
State officials said the initiative also aims to strengthen partnerships with higher education institutions and expand Texas’ role in the national semiconductor supply chain.
