NXP in talks to expand footprint in Austin

Dutch semiconductor maker NXP Semiconductors N.V. is seeking an economic development agreement with the city of Austin, Texas, as it considers future expansion of its local footprint. NXP’s investment has the potential to generate an estimated annual economic impact of $560 million, according to a media release from The City of Austin Economic Development Department.

Source: NXP

NXP is currently evaluating the potential to enhance its manufacturing capabilities at its two Austin-based chip manufacturing facilities. Should Austin be selected as the destination for this growth opportunity, the facilities will undergo retooling to optimize production lines, aligning them more effectively with the company’s market demands. The projected capital investment of $290.8 million for this undertaking would facilitate the expansion of NXP’s range of viable products and secure the ongoing operation of its Austin facilities. This initiative would also create 53 jobs over five years. Moreover, this endeavor would significantly bolster the semiconductor manufacturing sector in Austin, playing a pivotal role in addressing escalating global market demand for semiconductors and mitigating national security concerns stemming from semiconductor chip shortages.

“Empowering economic growth requires strategic collaboration and bold investments,” explains Sylnovia Holt-Rabb, Director of the Economic Development Department. “In our pursuit of cultivating a thriving community, we are dedicated to forging partnerships that not only strengthen our local industries but also resonate on a global scale. By fostering innovation and embracing opportunities like this, we are shaping a resilient future for Austin and beyond.”