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Choose a Texas fab site only after the serving utility, water provider, permitting agencies, workforce partners, and incentive administrators provide written, project-specific evidence. A transmission line, regional water-plan estimate, announced grant pool, or large nearby labor market is useful screening context—but none proves that a parcel can support your process, load, schedule, or expansion plan.
Start with one project brief for every candidate site
Site comparisons fail when each location is modeled with different assumptions. Before ranking parcels, create a requirements brief and use it unchanged unless a formal design revision is approved.
Define the manufacturing and construction case
- Process type, technology node assumptions, chemical inventory, tool count, and planned production capacity.
- Ramp dates, building phases, cleanroom area, support buildings, utility corridors, laydown space, and ultimate acreage.
- Construction start, shell completion, tool delivery, installation, qualification, first wafer, and commercial production milestones.
- Peak, average, and firm electric load by phase; power-quality requirements; outage tolerance; backup generation; and expansion load.
- Annual and peak-day water demand; raw-water quality; ultrapure-water production; cooling; recycling; wastewater treatment; discharge; and drought contingencies.
- Hiring by month and occupation, including construction trades, tool installers, engineers, technicians, operators, facilities, environmental health and safety, and maintenance.
- Freight modes, oversized-load routes, supplier access, customer distribution, travel-time limits, and construction-material logistics.
- Required permits, agency dependencies, community commitments, incentive assumptions, and a schedule contingency.
Put a named owner and evidence status beside every requirement: confirmed in writing, technically feasible but unconfirmed, or an assumption requiring diligence. A broker estimate belongs in the last category, not in the capacity column.
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A nearby substation or transmission line does not establish that the requested load can be served. A fab needs a service plan matched to its process loads, reliability tolerances, construction milestones, and expansion schedule.
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Use the current ERCOT and utility process
Ask the serving transmission and distribution providers to identify the current large-load interconnection or modification path. Confirm the applicable requirements in the current ERCOT Planning Guide, including Section 9 for large-load interconnection or modification. ERCOT revises its guide and related forms, so record the revision date used in your diligence file.
- Identify the service point. Obtain a written statement of the proposed point of interconnection, voltage level, ownership boundary, and which utility or transmission provider is responsible for each study.
- Submit the load case. Provide peak, average, firm, reactive, harmonic, startup, construction, and phased-expansion profiles. Include sensitive tools, ride-through requirements, and the consequences of an interruption.
- Request formal studies. Ask for transmission, distribution, short-circuit, stability, protection, and power-quality studies as applicable. A conceptual map or public capacity figure is not a study result.
- List every upgrade. Record new substations, transformers, lines, breakers, protection systems, right-of-way work, telecommunications, and network reinforcements.
- Assign cost responsibility. Obtain written estimates identifying utility, customer, shared, reimbursable, and potentially refundable costs, along with escalation assumptions.
- Tie service to milestones. Require dates for study completion, agreements, procurement, construction, energization, temporary construction service, first-phase firm service, and later expansion.
- Document contingencies. Ask what happens if equipment delivery, permitting, right-of-way acquisition, generation retirements, or another large customer changes the schedule.
Do not substitute statewide energy-price comparisons for this process. Price and reliability matter, but neither is established for a particular parcel without a site-specific service and reliability analysis.
Power evidence to put in the investment committee file
- Utility or transmission-provider study requirements and acceptance date.
- Load-flow and reliability assumptions, including the planning horizon.
- Upgrade scope, cost allocation, procurement lead times, and critical-path items.
- Temporary construction power and permanent service dates for each phase.
- Contract terms for firm capacity, curtailment, outage notification, and expansion rights.
- Independent review of utility assumptions by a qualified power engineer.
Water: evaluate source, quality, timing, and drought resilience
Water diligence must cover more than an annual volume. Process water, cooling, ultrapure-water production, fire protection, sanitation, wastewater, and discharge can have different quality and timing requirements. A regional plan can indicate pressure or identify a proposed project, but it is not a service commitment or allocation.
Build a phased water balance
- Quantify demand. Model annual, monthly, daily, peak-hour, startup, shutdown, and emergency demand for each construction and production phase.
- Separate uses. Break out ultrapure-water feed, cooling towers, chillers, scrubbers, boilers, laboratories, fire protection, sanitation, irrigation, and other uses.
- Specify quality. Define raw-water chemistry, temperature, turbidity, contaminants, pretreatment, polishing, storage, and monitoring requirements.
- Calculate reuse. Identify reclaimable streams, recycle ratios, treatment technologies, reject volumes, and the water balance at full production.
- Define wastewater. Characterize chemical and biological constituents, equalization, pretreatment, discharge limits, sewer capacity, industrial pretreatment obligations, and contingency storage.
- Verify legal availability. Obtain the source, permit or contract authority, reserved volume, delivery pressure, drought rules, curtailment order, and expansion rights in writing.
- Test schedule. Confirm design, permitting, pipeline, treatment, storage, and connection dates against the fab’s tool-installation and qualification milestones.
Use regional-plan numbers correctly
The 2026 Region C regional water plan lists expected use of 8,968 acre-feet per year for a new Texas Instruments semiconductor plant in Grayson County and 3,000 acre-feet per year for an expansion in Collin County. Those figures are planning estimates for named facilities within that regional plan. They are not independently measured consumption, a standard fab benchmark, or a commitment to another site.
Texas water planning incorporates 16 regional water plans and evaluates supplies and needs against a repeat of the drought of record. Use that planning context to test long-term resilience, then obtain parcel-specific confirmation from the water supplier and relevant local entities. Your file should state who will deliver the water, from which source, under what contract or permit, at what quality and pressure, by which date, and with what drought restrictions.
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Water red flags
- A supplier quotes an annual volume but cannot document peak-day capacity or delivery pressure.
- Water is available only after an unapproved reservoir, pipeline, treatment plant, or interlocal agreement.
- The source meets volume needs but not raw-water quality, discharge, or ultrapure-water pretreatment requirements.
- Reuse assumptions lack pilot data, storage, redundancy, or a plan for reject and concentrate streams.
- Drought language permits curtailment during the same period the fab expects to qualify tools.
Workforce: model occupations, timing, and competition
“Available labor” is not one number. A fab’s workforce case combines construction trades, tool installation, process and equipment engineers, technicians, operators, facilities specialists, environmental health and safety staff, and maintenance personnel. Each group has different supply, training, wage, commute, and shift requirements.
Build the labor model
- List every occupation by construction, installation, qualification, ramp, and steady-state phase.
- Set headcount, shift pattern, skill level, start date, retention assumption, and maximum acceptable commute for each role.
- Map the realistic commute shed by travel time and shift, not simply by county population.
- Identify nearby employers competing for electricians, controls technicians, welders, industrial mechanics, engineers, and operators.
- Obtain wage, premium, relocation, housing, childcare, transportation, and retention assumptions from current labor-market evidence.
- Inventory community colleges, technical schools, universities, registered apprenticeships, veterans programs, and incumbent-worker training.
- Test whether those partners can add instructors, labs, equipment, and cohorts before tool installation—not just advertise existing courses.
The Texas Semiconductor Strategic Plan makes workforce development a state objective. Texas Workforce Commission announced a $5 million ASCEND training grant fund on March 31, 2026, naming semiconductor manufacturing among its target industries. Verify the current application window, eligibility, matching rules, award size, reimbursement mechanics, and remaining funds with the commission before including any award in the financing plan.
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Interpret statewide employment statistics carefully
The Texas Semiconductor Strategic Plan reports more than 51,000 Texans employed in the semiconductor and electronics industry. That category combines semiconductor and electronics employment; it should not be presented as the number of fab workers available at a candidate site. The same plan attributes 28% of U.S. semiconductor exports in 2024 to Texas. That is useful industry context, not proof that a parcel has the required labor pool or training capacity.
Incentives: separate eligibility, approval, and cash timing
Incentives can improve a project’s economics, but they cannot cure an unconfirmed utility connection, water commitment, permit path, or hiring plan. Compare incentives only after each site has passed basic feasibility gates.
Texas Semiconductor Innovation Fund
The Texas Semiconductor Innovation Fund (TSIF) supports eligible semiconductor projects through grants or matching funds. Its official program page describes eligible applicants that can include state entities, institutions of higher education, and private businesses with an established Texas presence planning qualifying new or expanded projects. The page reports $698 million appropriated in June 2023 plus $250 million in June 2025—approximately $948 million in total appropriations.
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That approximately $948 million is program appropriation context, not money reserved for your company, a guaranteed award, or an indication of award probability. Confirm eligible costs, match requirements, application deadlines, local-awareness conditions, reporting, job and investment commitments, payment timing, and clawbacks in the current program materials.
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The Texas Jobs, Energy, Technology, and Innovation (JETI) program is governed separately by statute. Before recommending approval, the Comptroller must make specified findings, including that the agreement is a compelling factor in a competitive site selection and that, without it, the applicant would not make the investment in Texas.
For the statutory site-selection finding, the law identifies workforce, regulatory environment, infrastructure, transportation, market conditions, investment alternatives, and specific incentive information from other potential sites. Prepare that comparison with written term sheets, local approvals, deadlines, performance obligations, security or clawback provisions, and the downside if a job, wage, investment, or schedule commitment is missed.
Compare incentives in a net-value table
| Item | Candidate A | Candidate B | Evidence required |
|---|---|---|---|
| Program and statutory authority | not stated | not stated | Current program rules and legal eligibility |
| Written offer or term sheet | not stated | not stated | Executed or formally issued document |
| Gross value and payment schedule | not stated | not stated | Amount, appropriation, reimbursement, and timing |
| Required investment, jobs, wages, and milestones | not stated | not stated | Performance agreement and measurement rules |
| Local participation and approvals | not stated | not stated | Governing-body actions and conditions |
| Clawback, penalty, or expiration exposure | not stated | not stated | Default, cure, recapture, and sunset provisions |
| Net value after compliance and financing costs | not stated | not stated | Independent financial model |
Permitting and community diligence belong in early screening
Air permitting can affect site choice, building layout, chemical systems, abatement, schedule, and community acceptance. TCEQ publishes Air Permit by Rule 106.225 guidance and applicability checklists for semiconductor manufacturing. The rule applies only when its general and specific conditions are met. If the project cannot comply, another New Source Review authorization may be required.
Screen the air-permit route
- Describe each process, chemical, tool, exhaust stream, control device, operating schedule, and construction phase.
- Map emissions and control assumptions to the current TCEQ semiconductor guidance and checklists.
- Identify conditions that could disqualify a Permit by Rule approach, including equipment, emissions, monitoring, or operational limits.
- Have an air-permitting professional confirm the likely authorization path, registration or application needs, modeling, public-notice requirements, and schedule.
- Carry water, wastewater, construction, land-use, hazardous-material, fire, and other reviews in the same permitting schedule.
Do not claim that a parcel qualifies merely because a generic semiconductor checklist exists. The actual process, chemicals, equipment, emissions, and controls determine applicability. Begin community coordination early, particularly where local awareness, utility construction, water infrastructure, traffic, noise, or workforce housing could affect support.
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Score sites on identical, evidence-based axes
Use a weighted scorecard only after defining the evidence standard. A site with a lower headline cost should not outrank one with firm power and water if its schedule depends on unapproved upgrades.
| Evaluation axis | Questions to answer | Minimum evidence |
|---|---|---|
| Power | What load can be served, when, at what voltage, with what upgrades, reliability, and expansion rights? | Current utility/ transmission studies, service terms, upgrade scope, cost allocation, and energization dates |
| Water | What source and quality are available at peak and annual demand, during drought, with what treatment, reuse, and discharge path? | Supplier capacity letter or contract, permits, water balance, quality data, drought rules, and delivery schedule |
| Workforce | Can each occupation be hired and retained for every phase and shift? | Occupation-level labor model, wage assumptions, commute analysis, training commitments, and competitor map |
| Permitting and execution | What authorizations, dependencies, community actions, and agency timelines could delay construction or qualification? | Pre-application feedback, permit matrix, critical path, responsibility assignments, and contingency |
| Incentives | What is eligible, approved, payable, net of compliance cost, and exposed to recapture? | Current rules, written offers, governing approvals, performance terms, and financial model |
| Logistics and alternatives | Can tools, chemicals, construction materials, suppliers, and finished product move reliably, and what is the cost of delay? | Route studies, carrier input, supplier/customer analysis, infrastructure scope, and alternative-site comparison |
Texas JETI’s statutory considerations provide a useful completeness check: workforce, regulatory environment, infrastructure, transportation, market conditions, investment alternatives, and specific incentives from competing sites. The statute does not supply comparative scores for individual parcels; your team must establish those from current evidence.
Use staged decision gates
Gate 1: desktop screen
Reject parcels that plainly lack the required acreage, access, zoning compatibility, flood resilience, or a plausible utility and water path. Record the reason and the evidence date.
Gate 2: written capacity screen
Require utility and water-provider responses, an initial permitting discussion, a workforce map, and a preliminary incentive eligibility review. Do not advance a site on verbal assurances alone.
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Gate 3: engineering and schedule validation
Commission load studies, a process-water balance, geotechnical and civil work, preliminary air and wastewater analysis, logistics studies, and a labor-and-training plan. Integrate all dependencies into one schedule.
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Gate 4: commercial and public commitments
Negotiate service agreements, water contracts, land and infrastructure obligations, incentive term sheets, local approvals, training arrangements, and community commitments. Identify conditions precedent and termination rights.
Gate 5: investment recommendation
Approve only when the remaining unknowns have owners, dates, cost allowances, and explicit downside treatment. Present a base case, delay case, utility-upgrade case, drought case, labor-shortage case, and incentive-loss case.
Common mistakes and how to correct them
- Mistake: treating a nearby substation as capacity. Correct it with current large-load studies, upgrade scope, cost responsibility, and an energization schedule.
- Mistake: applying one water figure to every fab. Correct it with a project water balance and clearly labeled regional-plan estimates.
- Mistake: counting statewide semiconductor employment as available fab labor. Correct it with occupation, shift, commute, wage, competition, and training analysis.
- Mistake: booking a grant-pool headline as project funding. Correct it by separating appropriation, eligibility, application, award, payment, and recapture risk.
- Mistake: waiting for final design before considering permits. Correct it by using the current TCEQ semiconductor guidance as an early process-and-emissions screen.
- Mistake: allowing each site team to change assumptions. Correct it with one controlled project brief, a common scorecard, and dated evidence registers.
What Texas-wide context can—and cannot—tell you
Texas has substantial semiconductor policy and industrial context. The Texas Semiconductor Strategic Plan cites more than 51,000 semiconductor-and-electronics jobs, 28% of U.S. semiconductor exports in 2024, and a $52.7 billion federal CHIPS and Science Act allocation. These figures help explain why the state is a serious candidate for investment, but they do not establish service at an individual parcel, a particular labor pool, or an award for your project.
The same discipline applies to TSIF’s approximately $948 million in total appropriations, the $5 million ASCEND announcement, and regional water-plan project estimates. Use each number for the narrow purpose and date for which it was published, then replace statewide or program-level context with current written confirmation for the selected site.
Frequently Asked Questions
What is the single most important test for a Texas fab site?
Whether the site has written, project-specific evidence that power and water can be delivered at the required quality, quantity, and dates. Everything else should be evaluated against that same phased project brief.
Can a regional water-plan estimate be used as a fab water benchmark?
No. The 8,968-acre-foot estimate in the 2026 Region C plan is for a named facility and is a planning estimate, not a general consumption standard or service commitment.
Does a large Texas semiconductor incentive pool mean funding is available?
No. Appropriations describe program scale. Eligibility, application, approval, payment timing, performance obligations, and recapture terms must be confirmed for the specific project.
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