These Chips Will Bring Chunks of Change to Texas Real Estate
Semiconductor plants have been the topic of discussion in Texas real estate news and for good reason. With plenty of tech giants moving to the Lone Star State, this additional spur could spell a big boom for local real estate markets.
The Microchip Companies Contributing to Austin Area Growth
Samsung announced last year that they plan to build a $17 billion chip-making plant in Taylor, about 30 miles north of Austin. The facility will develop processors for smartphones, 5G, data centers, computing, and artificial intelligence platforms in late 2024. This new development is expected to create around 2,000 jobs.
More recently, Micron Technology has been scouting the Austin area with the hope of developing its own semiconductor plant. This multibillion-dollar development could potentially land in Caldwell or Williamson counties, located in central Texas. If Micron commits to development in Central Texas, this would be the second semiconductor plant in the area following Samsung.
Previously, Micron had plans to develop its chip plant in North Carolina, but the deal died in negotiations. If the plan had gone through, it would have been a $40 billion investment that brought 5,000 - 10,000 jobs. The city of Austin is hopeful it can land this development deal and add those jobs to its quickly growing tech territory.
Semiconductor Plants Spur Superhighway in Texas
After news of microchip plant investments hit, plans were quickly drawn up to invest heavily into infrastructure that would support these new plants and their workforce. According to NAR, improvements to infrastructure have been shown to enhance property value by creating livable communities and business districts. At this time, there are no concrete plans for the communities surrounding the microchip plants or the superhighway.
The section of U.S. Highway 79 near the small town of Taylor, where Samsung plans to build a $17 billion semiconductor factory, might set the foundation for more tech facilities to call the area home. The Chip Corridor, about 30 miles northeast of Austin, offers a plethora of underdeveloped land as well as access to Interstate 35 and a parallel Union Pacific rail line.
These factors could spell major development, as the area will draw residential subdivisions, mixed-use properties, and commercial buildings targeted to serve the growing workforce behind these tech giants.
Beyond the semiconductor plants expansion plans, the greater Austin area is already home to major developments, including:
- Kalahari Resort
- Convention Center
- New Apple campus
- Tesla’s Giga factory
All of these new developments except the Tesla Giga factory are located in Williamson County, where county heads are envisioning the “technology superhighway of the world.”
“Texas is really a destination point, in terms of its leading the nation within the semiconductor industry. This industry is really in the global spotlight today given the supply chain crisis,” said John Boyd Jr., Principal at Boyd Company, in an interview with TheRealDeal.com.
Boyd Jr. and other experts in the area have a grand vision for the future of Williamson County. As more tech giants call Texas home, more and more development opportunities will arise in terms of both infrastructure and real estate.
Already, Williamson County’s population has grown by an average of 4.0% over the last three years. In that same vein, Williamson County’s home values have skyrocketed, increasing by 53.1% from January 2021 to January 2022.
The CE Shop readers: Have you seen a change in your market from tech giants moving to Texas? Where are these new residents moving from? Let us know in the comments!