Biden administration agrees to provide $6.4 billion to Samsung for making computer chips in Texas

tech development

The funding announced Monday by the Commerce Department is part of a total investment in the cluster that, with private money, is expected to exceed $40 billion. Photo via Getty Images

The Biden administration has reached an agreement to provide up to $6.4 billion in direct funding for Samsung Electronics to develop a computer chip manufacturing and research cluster in Texas.

The funding announced Monday by the Commerce Department is part of a total investment in the cluster that, with private money, is expected to exceed $40 billion. The government support comes from the CHIPS and Science Act, which President Joe Biden signed into law in 2022 with the goal of reviving the production of advanced computer chips domestically.

“The proposed project will propel Texas into a state of the art semiconductor ecosystem,” Commerce Secretary Gina Raimondo said on a call with reporters. “It puts us on track to hit our goal of producing 20% of the world’s leading edge chips in the United States by the end of the decade.”

Raimondo said she expects the project will create at least 17,000 construction jobs and more than 4,500 manufacturing jobs.

Samsung's cluster in Taylor, Texas, would include two factories that would make four- and two-nanometer chips. Also, there would be a factory dedicated to research and development, as well as a facility for the packaging that surrounds chip components.

The first factory is expected to be operational in 2026, with the second being operational in 2027, according to the government.

The funding also would expand an existing Samsung facility in Austin, Texas.

Lael Brainard, director of the White House National Economic Council, said Samsung will be able to manufacture chips in Austin directly for the Defense Department as a result. Access to advanced technology has become a major national security concern amid competition between the U.S. and China.

In addition to the $6.4 billion, Samsung has indicated it also will claim an investment tax credit from the U.S. Treasury Department.

The government has previously announced terms to support other chipmakers including Intel and Taiwan Semiconductor Manufacturing Co. in projects spread across the country.

A team from HCC won the top prize at a tech competition. Photo courtesy of HCC

3 Houston students win international AI competition

top of class

A team of students from Houston Community College Southwest took home the top prize at the Intel AI Global Impact Festival in San Jose, California, last month for AI-based technology they developed to boost safety in the workplace.

Serr Brown, a correctional officer taking classes at HCC; Dina Marie Stager, an office manager at a marketing firm advancing her computer science skills; and student Ryan Galbraith made up the three-person team. Stager is now the first woman to receive the Intel festival’s top prize.

Over the span of three months, the team developed their Indoor Industrial Safety Program, which uses AI and a high-performance drone to map indoor industrial sites and create a 3D digital replica in about 30 minutes. The program aims to help companies better understand its building layout before making additions or improvements, among other uses.

“It’s no small feat,” G. Raymond Brown, HCC AI program coordinator, said in a statement. “It’s difficult to get coordinate data indoors. The problem was solved by the students by using AI to provide the drone with coordinates and accuracy needed to build a 3D model.”

Each member of the team was awarded $5,000, an Intel-powered laptop, and mentorship opportunities after beating out more than 1,000 other entries from 25 nations.

Intel Corporation is an education partner of HCC’s AI associate degree program, which was launched in the summer of 2020. The first class of AI students graduated from the two-year program earlier this year, according to the college.

“I believe that AI has the potential to change the world for the better, and I am excited to be part of the field,” Brown said in a statement. “I am looking forward to learning more about AI and how it can be used to improve the lives of people across the world.”

The inaugural Smart Cities accelerator in Houston will have its cohort create solutions for a set of problems the city faces. Sky Noir Photography by Bill Dickinson/Getty Images

5 things you need to know about Houston's Microsoft- and Intel-backed accelerator program

New to town

At a Microsoft IoT in Action event in April, Mayor Sylvester Turner announced that the city would launch the Ion Smart Cities Accelerator — a program that would task a set of startups and entrepreneurs with creating digital and technical solutions to key problems within Houston.

"As a result of incorporating smart technologies, Houston will have the ability to create a more resilient and mobile-friendly city, and in turn accelerate our city's economic growth and prepare for the needs of 21st Century citizens," Mayor Turner says in a release.

While there's still a lot to finalize within this new program before the first cohort begins in September, here are the five things you need to know about the accelerator.

It's an effort from multiple parties.  

There are several major players behind the initiative. Station Houston will host the accelerator — first in its current headquarters and then later from The Ion when it opens in 2020. Station will also team up with TX/RX, a nonprofit makerspace in East Downtown, to be a resource for engineering and design elements.

Microsoft and Intel are backing the program — both monetarily and various other support roles.

"For me, having been doing this for a few years now, it's such a huge step for the city," Gabriella Rowe, CEO of Station Houston, tells InnovationMap. "We are not only talking about major companies in the world of technology to make a significant investment in our startup community, but that investment that they are making is in our city as well. That is not to be underestimated."

The first cohort's goals will be to find solutions within mobility and resilience. 

Key stakeholders within the program identified mobility and resilience as the two focus points the first cohort will work within. Currently, the stakeholders are again narrowing down the topics to identify 10 problems within mobility and resilience, which the cohort will then be tasked with solving.

The accelerator, which is currently set up to have one cohort a year, Rowe says, will then identify other various issues within Houston in subsequent cohorts.

"There will be, what seems at this point, an endless array of challenges the entrepreneurs in the accelerator can address," Rowe says.

Should the opportunity arise, Rowe says, the organization could also launch a concurrent cohort in six months, rather than waiting until next year.

The cohort will come from across the country. 

Once the list of 10 problems to solve has been finalized, the organization will go on a national search to find the cohort.

"Of course we hope we will be able to find some fabulous companies here at home, but we are also hoping we are enabling companies from around the rest of the United States to discover Houston," Rowe says.

A selection committee made up of stakeholders from all the participating organizations will evaluate the applications and selections.

"We not only want to be sure we are bringing in geographic diversity, but we also want to bring in industry diversity because that will allow challenging perspectives when problem solving," says Rowe.

A key part of this process is getting the word out about the program. Station hosted a launch event on May 30 to introduce the program to Houston.

"We can only be successful as the companies we can attract to be a part of the accelerator," Rowe says.

How it will work.

The 10-month program will have 10 startups per cohort, and the programming will be broken down into three phases. The first three months will be a time of discovery and ideating with a structured curriculum designed around mobility and resiliency. Next, the startups will prototype and validate their products. The second half of the accelerator will be pilot programs within the city of Houston.

The ultimate goal is to better Houston as a whole.

The Ion Smart Cities Accelerator is different than anything else Houston has to offer, Rowe says, mainly because its primary goal is creating solutions for some of Houston's biggest problems.

"We now finally for Houston to take the advancements we've made in innovation — especially in tech — and bring it into the lives of everyone," Rowe says. "It's wonderful in so many ways, but it puts a tremendous amount of responsibility on our shoulders to make sure we are doing this with the communities of Houston as opposed to doing it to the communities of Houston."

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Houston geothermal unicorn Fervo officially files for IPO

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Fervo Energy has officially filed for IPO.

The Houston-based geothermal unicorn filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission on April 17 to list its Class A common stock on the Nasdaq exchange. Fervo intends to be listed under the ticker symbol "FRVO."

The number and price of the shares have not yet been determined, according to a news release from Fervo. J.P. Morgan, BofA Securities, RBC Capital Markets and Barclays are leading the offering.

The highly anticipated filing comes as Fervo readies its flagship Cape Station geothermal project to deliver its first power later this year

"Today, miles-long lines for gasoline have been replaced by lines for electricity. Tech companies compete for megawatts to claim AI market share. Manufacturers jockey for power to strengthen American industry. Utilities demand clean, firm electricity to stabilize the grid," Fervo CEO Tim Latimer shared in the filing. "Fervo is prepared to serve all of these customers. Not with complex, idiosyncratic projects but with a simplified, standardized product capable of delivering around-the-clock, carbon-free power using proven oil and gas technology."

Fervo has been preparing to file for IPO for months. Axios Pro first reported that the company "quietly" filed for an IPO in January and estimated it would be valued between $2 billion and $3 billion.

Fervo also closed $421 million in non-recourse debt financing for the first phase of Cape Station last month and raised a $462 million Series E in December. The company also announced the addition of four heavyweights to its board of directors last week, including Meg Whitman, former CEO of eBay, Hewlett-Packard, and Spring-based HPE.

Fervo reported a net loss of $70.5 million for the 2025 fiscal year in the S-1 filing and a loss of $41.1 million in 2024.

Tracxn.com estimates that Fervo has raised $1.12 billion over 12 funding rounds. The company was founded in 2017 by Latimer and CTO Jack Norbeck.

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This article originally appeared on our sister site, EnergyCapitalHTX.com.

New UT Austin med center, anchored by MD Anderson, gets $1 billion gift

Future of Health

A donation announced Tuesday, April 21, breaks a major record at the University of Texas at Austin. Michael and Susan Dell are now UT Austin's first supporters to give $1 billion. In response, the university will create the UT Dell Campus for Advanced Research and the UT Dell Medical Center to "advance human health," per a press release.

The release also records "significant support" for undergraduate scholarships, student housing, and the Texas Advanced Computing Center for supercomputing research.

Both the new research campus and the UT Dell Medical Center will integrate advanced computing into their research and practices. At the medical center, the university hopes that will lead to "earlier detection, more precise and personalized care, and better health outcomes." The University of Texas MD Anderson Cancer Center will also be integrated into the new medical center.

That comes with a numeric goal measured in 10s: raise $10 billion and rank among the top 10 medical centers in the U.S., both in the next decade.

In the shorter term, the university will break ground on the medical center with architecture firm Skidmore, Owings & Merrill (SOM) "later this year."

“UT Austin, where Dell Technologies was founded from a dorm room, has always been a place where bold ideas become real-world impact,” said Michael and Susan Dell in a joint statement.

They continued, “What makes this moment so meaningful is the opportunity to build something that brings every part of the journey together — from how students learn, to how discoveries are made, to how care reaches families. By bringing together medicine, science and computing in one campus designed for the AI era, UT can create more opportunity, deliver better outcomes, and build a stronger future for communities across Texas and beyond.”

This is the second major gift this year for the planned multibillion-dollar medical center. In January, Tench Coxe, a former venture capitalist who’s a major shareholder in chipmaking giant Nvidia, and Simone Coxe, co-founder and former CEO of the Blanc & Otus PR firm, contributed $100 million$100 million.

Baylor scientist lands $2M grant to explore links between viruses and Alzheimer’s

Alzheimer’s research

A Baylor College of Medicine scientist will begin exploring the possible link between Alzheimer’s disease and viral infections thanks to a $2 million grant awarded in March.

Dr. Ryan S. Dhindsa is an assistant professor of pathology & immunology at Baylor and a principal investigator at Texas Children’s Duncan Neurological Research Institute (Duncan NRI). He hypothesizes that Alzheimer’s may have some link to previous viral infections contracted by the patient. To study this intriguing possibility, the American Brain Foundation has gifted him the Cure One, Cure Many award in neuroinflammation.

“It is an honor to receive this support from the Cure One, Cure Many Award. Viral infections are emerging as a major, underappreciated driver of Alzheimer's disease, and this award will allow our team to conduct the most comprehensive screen of viral exposures and host genetics in Alzheimer's to date, spanning over a million individuals,” Dhindsa said in a news release. “Our goal is to identify which viruses matter most, why some people are more vulnerable than others, and ultimately move the field closer to new therapeutic strategies for patients.”

Roughly 150 million people worldwide will suffer from Alzheimer’s by 2050, making it the most common cause of dementia in the world. Despite this, scientists are still at a loss as to what exactly causes it.

Dhindsa’s research is part of a new range of theories that certain viral infections may trigger Alzheimer’s. His team will take a two-fold approach. First, they will analyze the medical records of more than a million individuals looking for patterns. Second, they will analyze viral DNA in stem cell-derived brain cells to see how the infections could contribute to neurological decay. The scale of the genomic data gathering is unprecedented and may highlight a link that traditional studies have missed.

Also joining the project are Dr. Caleb Lareau of Memorial Sloan Kettering Cancer Center and Dr. Artem Babaian of the University of Toronto. Should a link be found, it would open the door to using anti-virals to prevent or treat Alzheimer’s.

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