Texas awards $4.8M to expand semiconductor manufacturing in Pharr

The state of Texas awarded a $4.83 million grant to Avant Technology to expand its manufacturing operations in Pharr, a project expected to create 250 jobs and bring more than $20 million in capital investment to the Rio Grande Valley.

The funding comes from the Texas Semiconductor Innovation Fund, a program created under the state’s 2023 CHIPS Act to strengthen semiconductor research and manufacturing capacity.

“Texas is the nation’s magnet for advanced manufacturing,” Gov. Greg Abbott said in a news release Thursday. “This expansion by Avant Technology in Pharr will generate hundreds of new high-skilled jobs in the Rio Grande Valley and create new opportunities for hands-on training for the workforce of tomorrow.”

Avant Technology, headquartered in Pflugerville, designs and manufactures semiconductor assemblies such as solid-state drives and memory modules. The Pharr expansion will focus on producing more complex components for enterprise, automotive, and industrial markets.

Workforce pipeline

The company is partnering with South Texas College to provide students with hands-on access to manufacturing equipment, with training focused on semiconductor assembly, quality control, and advanced production skills.

“This support advances our cutting-edge memory technology, creates high-skilled jobs, and solidifies Texas as the premier hub for semiconductor innovation and growth,” Tim Peddecord, CEO and president of Avant Technology said.

State and local officials framed the project as a signal that South Texas is beginning to attract investment tied to the semiconductor supply chain.

“I welcome Avant Technology to the City of Pharr in the Rio Grande Valley,” state Sen. Juan “Chuy” Hinojosa said. “As the first project in South Texas to receive TSIF grant funding, this is proof that the RGV has the talent, the workforce, and the pro-business communities needed to support this important industry.”

Broader push

The Texas Semiconductor Innovation Fund is part of a broader state effort to compete nationally in semiconductor manufacturing by incentivizing companies to expand operations in Texas and by strengthening ties with higher education institutions.

Officials said the program is designed to help develop a skilled workforce and position Texas as a leader in semiconductor production.

“This investment in Avant Technology is a major win for the Rio Grande Valley and for Texas’ growing semiconductor industry,” said state Rep. Armando “Mando” Martinez.

The expansion represents one of the first semiconductor-focused investments tied directly to state incentives in the Rio Grande Valley, adding to a growing pipeline of advanced manufacturing projects across South Texas.