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 booms as No. 2 U.S. market for retail construction in 2025

Construction Zone

Get ready for a gigantic cartload of new shopping opportunities in Houston. A new report indicates the equivalent of 21 Walmart supercenters is under construction in the region.

The report, published by commercial real estate services provider Lee & Associates, says Houston has nearly 3.9 million square feet of retail space under construction, making it the second most active market for new retail space in the U.S.

To put that in perspective, given the average Walmart supercenter measures 182,000 square feet, the 3.9 million-square-foot total would work out to 21 new supercenters being built in the region.

Dallas-Fort Worth is by far the most active U.S. market for new retail space; DFW leads more than 60 U.S. retail markets with nearly 7.15 million square feet of space under construction. The amount of retail space going up in DFW represents 15 percent of all retail space under construction in the more than 60 U.S. markets tracked by Lee & Associates.

Houston and Austin aren’t too far behind Dallas-Fort Worth, though.

Third-ranked Austin area has more than 3.4 million square feet of retail space being built.

What’s behind the surge in retail construction across Texas? Population growth.

Data recently released by the U.S. Census Bureau shows Houston was the second-fastest-growing metro from 2023 to 2024. DFW was the country’s third-fastest-growing metro from 2023 to 2024, based on the number of new residents, and Austin landed at No. 13.

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This article originally appeared on CultureMap.com.

Intuitive Machines to acquire NASA-certified deep space navigation company

space deal

Houston-based space technology, infrastructure and services company Intuitive Machines has agreed to buy Tempe, Arizona-based aerospace company KinetX for an undisclosed amount.

The deal is expected to close by the end of this year, according to a release from the company.

KinetX specializes in deep space navigation, systems engineering, ground software and constellation mission design. It’s the only company certified by NASA for deep space navigation. KinetX’s navigation software has supported both of Intuitive Machines’ lunar missions.

Intuitive Machines says the acquisition marks its entry into the precision navigation and flight dynamics segment of deep space operations.

“We know our objective, becoming an indispensable infrastructure services layer for space exploration, and achieving it requires intelligent systems and exceptional talent,” Intuitive Machines CEO Steve Altemus said in the release. “Bringing KinetX in-house gives us both: flight-proven deep space navigation expertise and the proprietary software behind some of the most ambitious missions in the solar system.”

KinetX has supported deep space missions for more than 30 years, CEO Christopher Bryan said.

“Joining Intuitive Machines gives our team a broader operational canvas and shared commitment to precision, autonomy, and engineering excellence,” Bryan said in the release. “We’re excited to help shape the next generation of space infrastructure with a partner that understands the demands of real flight, and values the people and tools required to meet them.”

Intuitive Machines has been making headlines in recent weeks. The company announced July 30 that it had secured a $9.8 million Phase Two government contract for its orbital transfer vehicle. Also last month, the City of Houston agreed to add three acres of commercial space for Intuitive Machines at the Houston Spaceport at Ellington Airport. Read more here.

Japanese energy tech manufacturer moves U.S. headquarters to Houston

HQ HOU

TMEIC Corporation Americas has officially relocated its headquarters from Roanoke, Virginia, to Houston.

TMEIC Corporation Americas, a group company of Japan-based TMEIC Corporation Japan, recently inaugurated its new space in the Energy Corridor, according to a news release. The new HQ occupies the 10th floor at 1080 Eldridge Parkway, according to ConnectCRE. The company first announced the move last summer.

TMEIC Corporation Americas specializes in photovoltaic inverters and energy storage systems. It employs approximately 500 people in the Houston area, and has plans to grow its workforce in the city in the coming year as part of its overall U.S. expansion.

"We are thrilled to be part of the vibrant Greater Houston community and look forward to expanding our business in North America's energy hub," Manmeet S. Bhatia, president and CEO of TMEIC Corporation Americas, said in the release.

The TMEIC group will maintain its office in Roanoke, which will focus on advanced automation systems, large AC motors and variable frequency drive systems for the industrial sector, according to the release.

TMEIC Corporation Americas also began operations at its new 144,000-square-foot, state-of-the-art facility in Brookshire, which is dedicated to manufacturing utility-scale PV inverters, earlier this year. The company also broke ground on its 267,000-square-foot manufacturing facility—its third in the U.S. and 13th globally—this spring, also in Waller County. It's scheduled for completion in May 2026.

"With the global momentum toward decarbonization, electrification, and domestic manufacturing resurgence, we are well-positioned for continued growth," Bhatia added in the release. "Together, we will continue to drive industry and uphold our legacy as a global leader in energy and industrial solutions."

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This article originally appeared on EnergyCapitalHTX.com.

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