AUSTIN (KXAN) – On Thursday, Gov. Greg Abbott issued a statement for the U.S. Congress to pass the CHIPS Act of 2022. The legislation is set to promote the research, development and fabrication of semiconductors within Texas and the United States, according to Abbott.

Semiconductor chips are a component of many technology-based products such as smartphones, cars and computers.

If passed, the CHIPS Act would provide over $50 billion in grants and loans to companies that manufacture semiconductors.

The governor said Texas was a national leader in the semiconductor industry.

“More than 30,000 Texans work in this field and in the last year alone, Samsung and Texas Instruments announced major projects in Texas investing up to $47 billion, with the potential to create 5,000 new jobs,” Abbott said in a statement.

The legislation was said to assist the U.S. in securing a semiconductor supply chain. The governor said the supply chain would be vital to the nation’s economy and national security, and it would help Texas compete for investment in the industry.

“The federal incentives in the CHIPS Act of 2022 will help Texas leverage our investments in the semiconductor industry,” Abbott said, “and the tax provisions will benefit the semiconductor-related companies already operating in the state, while attracting others that are looking to expand and grow.”