Technology is not just a passing fancy in Texas. Nanotechnology and semiconductors help form an innovative advanced manufacturing segment of the Texas economy with a distinguished track record to prove it.

Texas is the birthplace of the integrated circuit and an entire industry that has grown up around the chip with the help of the state’s world-renowned research institutions and universities, a highly skilled workforce and key investments by public and private partners. More than 26,000 high-tech companies, with more than 470,000 employees, make their home in Texas. Research and development expenditures for microelectronics and computer technology at Texas institutions of higher education top $74 million annually.

Nanotechnology is No Small Thing

Nanotechnology is the understanding of very small materials at the atomic scale, but the size of the sector in Texas is huge. Texas is a global leader in nanotechnology research and distribution, and is nationally ranked for its nanotech-related research, venture capital and commercialization efforts.

Applied Optoelectronics, based in Sugar Land, is the world’s leading manufacturer of high-performance semiconductor laser diodes, which are used in high-speed fiber-optic data transmission. The company specializes in devices that enable advanced telecommunications networks that connect hundreds of millions of homes and small businesses worldwide to the Internet.

“For rapidly growing high-technology companies, Texas, in general, and the Houston area, in particular, have a near-ideal combination of business-friendly tax policies, highly skilled labor force, favorable cost of living, and a strong connection to the global business community," says Stefan J. Murry, Ph.D., vice president, global sales and marketing for AOI.

The company was founded 15 years ago in Houston, where it has grown to more than 800 employees and 300 customers in 27 countries around the world. 

LynnTech is a research and technology development company based in College Station that specializes in innovation in energy, water and health technologies. LynnTech was the recipient of a Texas Emerging Technology Fund (TETF) award to further develop its hydrogen fuel cell research technology. Company officials say one major benefit of the grant is that it will serve as a catalyst to attract new scientific and engineering talent to Texas as Lynn Tech improves on this technology.

Texas is Still in the Chips and More

Texas has been a global leader in the semiconductor industry since the 1950s. The Lone Star state ranks second in the nation in high-tech workers, technology job growth, high-tech payroll, number of tech establishments and semi-conductor manufacturing employment. Major employers in the computer and information technology cluster in Texas include Dell, Samsung, Texas Instruments, Raytheon, Freescale Semiconductor, Advanced Micro Devices and Labinal.

Samsung is expanding its semiconductor works in Austin, creating an additional 500 jobs to produce advanced logic devices for its LS1 business. With the latest $3.6 billion expansion, the Korean company will have invested more than $9 billion in Texas.

One of the state’s leading semiconductor companies, X-FAB Texas Inc., has developed an innovative way to extend the life and productivity of its 31-year-old facility in Lubbock. X-FAB and Cymbet Corp., a leader in solid-state energy storage solutions for microelectronic systems, announced a manufacturing cooperation agreement that will result in the world’s highest-volume solid-state battery (SSB) production facility. This new production facility, scheduled for initial operation in the first half of 2011, will significantly increase Cymbet’s manufacturing capacity for its EnerChip™ product to satisfy the growing global demand for eco-friendly rechargeable solid-state batteries.

Cymbet officials are excited to be able to partner with a U.S. supplier that brings a wealth of technological experience. “The proven expertise, capabilities, genuine partnership attitude and world-class people we sought are right in Lubbock,” says William Priesmeyer, Cymbet president and chief executive officer. “We have absolute confidence and commitment this will be a lasting relationship that will bring good job growth to Lubbock.”

X-FAB officials say the agreement will leverages the experience, resources and equipment that X-FAB has had at its Lubbock facility, creating more than 150 jobs over the next several years.

Lone Star Incubators Provides Boost to New Tech Firms

One of the major reasons for the continuing vitality of the technology sector of the Texas economy is the number and quality of the public and private research institutions in the state. Additionally, there are other institutions that have organized around encouraging entrepreneurs to transition from early stage ventures into full-scale commercialization. One stellar example is the Austin Technology Incubator, a nonprofit unit of The University of Texas in Austin.

Since its founding in 1989, ATI has worked with more than 200 companies, helping them raise more than $750 million in investor capital. While ATI assists entrepreneurs, it also provides a teaching laboratory for UT-Austin students.