ARLINGTON, Texas (October 5)- Texas Comptroller Glenn Hegar highlights the impacts of supply chains on the Texas economy as he resumes his Good for Texas Tour this week. Hegar’s focuses on the automotive and semiconductor supply chain industries, so he visited General Motors (GM) and Texas Instruments (TI).

“Global supply chains — the networks between a company and its suppliers that produce and distribute products to the final consumers — have been designed to lower both consumer and production costs. There are risks and vulnerabilities in the supply chain systems that have been designed over the last several decades, which were highlighted by COVID-19 economic disruptions.”

“Smart businesses like GM and TI are constantly working to evaluate and enhance their global supply networks. Government has proposed infrastructure funding for critical industries like semiconductors and rare earth processing, citing their importance to national security and national competitiveness. As the nation’s top state for international trade and the 9th largest economy in the world, limiting supply chain disruptions is critical to the Texas economy.”

Glenn Hegar Texas Comptroller

During his Good for Texas Tour: Supply Chains Edition, Hegar shares the results of a new Comptroller’s office study, that details the vital role of supply chains and how they help escalate production efficiency. In addition, result in shrinking costs for producers and consumers. The study also examines the risk to supply chains and how businesses and the federal government are countering those risks.

Today, Hegar visited about 1,300 vehicles built at Arlington’s assembly plant, which is home to every new full-size SUV in GM’s product lineup sold around the world. This includes Chevrolet Suburban and Tahoe, GMC Yukon and Yukon XL, and the Cadillac Escalade. Texas is home to 13 General Motors (GM) facilities, which hires more than 13,500 Texans (earning more than 1.3 billion in wage).

In 2020, Texas imported $38.3 billion worth of automobile manufacturing products and exported $11.7 billion. Motor vehicle parts represent the bulk — $8.3 billion or 71 percent — of the state’s automobile-related exports in 2020. That compares with a 40 percent share nationwide, reflecting the importance of those products to Texas.

Yesterday, Hegar visited Texas Instruments (TI) Dallas campus. This global semiconductor company, manufactures, designs, tests, and sells analog or embedded processing chips that go into a variety of end markets. The company has about 30,000 employees worldwide.

Since its company’s beginning, TI has invested in growing the state’s workforce to meet industry demands for the economy. Today, TI is in the process of expanding its Texas presence by building a new 300-mm wafer fabrication facility in Richardson as part of the company’s long-term capacity planning. Construction is in process, and the facility should be ready to support its production by the latter half of 2022.

In 2020, TI was part of an industry in Texas that produced more than one-quarter of the country’s semiconductor exports, which were valued at $63 billion. Texas’ semiconductor industry contributed $15.3 billion to the state’s gross domestic product (GDP) in 2020, 15 percent of the industry’s total United States’ GDP.

For more information on the tour, including video and social media graphics, go to the Comptroller’s website.