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Texas electronics industry www.BusinessInTexas.com The Texas Electronics Industry 2013 Contents Electronics Industry Overview 2 Semiconductors 11 Computer Equipment 19 Communications Equipment 22 Electronic Instruments 26 Texas High Tech Headlines Apple breaks ground on $300 million expansion at Austin campus, plans to hire 3,600 See Page 9 Ericsson begins $54 million Samsung Semiconductor expansion of U.S headquarters continues construction on $4 in Plano billion expansion at Austin fab See Page 11 See Page 24 Texas ranks #2 in Austin-based Texas public electronics National universitiesaward employment Instruments to add more than 26,000 nationwide 1,000 jobs at HQ high tech- related degrees since 2009 See Page 27 See Page 5 See Page 7 Texas-based Dell Inc. to go Semiconductor firmsCirrus private in $24 billion buyout Logic and Maxim Integrated Products build new corporate Dell operations info: facilities in Texas See Page 19 See Page 12 The Electronics Industry in Texas Top Three Texas Electronics Giants Dell Texas Freescale Sem- Instruments iconductor HQ: Round HQ: Austin Rock HQ: Dallas Semiconductors Computers, Semiconductors he electronics industry is an important and IT Services $13.7 billion $3.2 billion annual sales annual sales growing part of the diverse Texas economy, $62.1 billion T directly employing over 196,000 across the annual sales state. Nationally, Texas ranks No. 2 in electronics employment and No. 3 in output. And, for the first time in 2012, Texas ranks No. 1 nationally in electron- ics exports. Texas Electronics Employment Texas has been an electronics leader ever since the Second Quarter 2012, by Sector industry took off globally in the 1950s and Texas Instruments (TI) and other high tech companies established the state as a key tech hub. In fact, a TI engineer invented the integrated circuit in Dallas in Semiconductors 43,886 1958. Since then, the high tech electronics industry Electronic has spread its roots across the state with advances in Instruments 23,531 Computer semiconductors, computers, telecommunications, and, Manufacturing more recently, computer services. 16,037 Texas is an ideal location for Communications 13,028 Texas Electronics electronics design and Computer manufacturing firms, with a Systems Design State Rankings: diverse and highly skilled 58,718 Computer No. 1 in Exports workforce, a low-tax, Wholesale 41,082 No. 2 in Workforce business friendly environ- ment, a large consumer No. 3 in Value Added market, access to leading research universities, and a rich history of technological innovation. Electronics Source: Texas Workforce Commission firms in Texas also benefit from proximity to custom- Data note: This report covers activities categorized in the North American Industry Classi- ers in related industries, including aerospace & fication System (NAICS): Computers & Peripheral Equipment Mfg. (3341); Communica- defense, oil & gas, and automotive manufacturing. tions Equipment Mfg. (3342); Semiconductor & Electronic Components Mfg. (3344); Semiconductor Machinery Mfg. (333242); Electronic Instrument Mfg. (3345); Computer Wholesalers (423430); and Computer Systems Design (541512). 2 OVERVIEW State of the Industry Electronics Exports from Texas Total value of shipments from Texas to international In 2010, Texas ranked No. 3 nationally for electronics markets (in billions of U.S. dollars) by Sector manufacturing output, accounting for nearly 10% of the Semiconductors and Electronic Components U.S. total electronics manufacturing value, as measured$15.0 $15.0 by gross domestic product (GDP). $10.0 $10.0 $12.6 B $13.2 B $14.0 B $5.0 $9.8 B $5.0 Output of the Texas Electronics Industry $0.0 $0.0 From 2000-2010, the (GDP) of the Texas electronics man- 2009 2010 2011 2012 ufacturing industry grew from $16.4 billion to $24.1 bil- lion, a 47% increase. $15.0 Computers and Related Equipment $15.0 $10.0 $10.0 $12.8 B $5.0 $10.0 B $10.5 B $5.0 $21.7 B $24.1 B $8.7 B $16.4 B $0.0 $0.0 2009 2010 2011 2012 2000 2005 2010 $15.0 $15.0 Telecom Equipment Source: U.S. Bureau of Economic Analysis$10.0 $10.0 $5.0 $9.5 B $5.0 $6.9 B $8.2 B $8.9 B $0.0 $0.0 Texas Claims Spot as 2009 2010 2011 2012 Nation’s No. 1 Electronics Source: U.S. Census Bureau Exporting State In 2012, Texas ranked No. 1 in the U.S. Top Five Texas Ports for Electronics Exports for electronics exports, with over $42.4 By total value of international shipments (in billions, 2012) billion in electronic products shipped internationally. Texas electronics exports rose 9% in 2012 to edge out California DFW INT’L AIRPORT for this top spot. Mexico is the top $11.4 B destination for these goods, with nearly half of all Texas electronics exports heading to its southern neighbor. HOUSTON BUSH Electronics was the third largest export INT’L AIRPORT sector for Texas, behind petroleum $3.7 B EL PASO products and chemicals. Overall, Texas $11.0 B has been the top exporting state for 11 straight years. LAREDO $9.9 B HIDALGO $2.9 B 3 OVERVIEW Major Electronics Companies in Texas Select firms with corporate, research, or manufacturing facilities in the state Representative sample only. Map does not include all company locations. 4 OVERVIEW Texas Electronics Workforce Texas Ranks No. 2 in the U.S. in Total Electronics Employment Texas’ electronics workforce is the second largest in California the nation, with more than 137,500 professionals California 373,438 employed directly in hardware manufacturing and sales, and an additional 58,700 employed in computerTexas Texas 196,282 systems design. The second largest electronics sector in the state is semiconductor and electronic compo-Virginia Virginia 115,808 nent manufacturing, which includes integrated circuits, microprocessors, memory chips, andNew printed York New York 110,970 circuit boards and assemblies. This sector accounts for nearly 22% of electronics employment Massachusettsin Texas (see Massachusetts 90,910 table below). Florida Florida 81,265 The Texas workforce is significantly more specialized in electronics manufacturing than other U.S. states,Illinois Illinois 68,557 measured by electronics workers per capita. The percentage of Texas workers employed in semicon- Source: U.S. Bureau of Labor Statistics ductor, computer, and telecom manufacturing is 30%- 40% greater than the national average. Electronics-Related Employment in Texas Second Quarter 2012 Average Sector (Industry Code) Employees Firms Annual Wage Computers and Peripheral Equipment Mfg. (3341) 16,037 95 $122,148 Communications Equipment Manufacturing (3342) 13,028 154 $109,252 Semiconductor and Electronic Components Mfg. (3344) 43,236 346 $95,212 Semiconductor Machinery Manufacturing (333242) 650 24 $82,316 Electronic Instrument Manufacturing (3345) 23,531 493 $84,604 Computers, Peripheral Equip. & Software Wholesale (423430) 41,082 765 $103,064 Computer Systems Design Services (541512) 58,718 6,800 $88,660 TOTAL 196,282 8,677 $96,714 Source: Texas Workforce Commission 5 OVERVIEW Texas 5-Year Employment Trends by Sector, 2007 to 2012 60,000 Semiconductors Computer Systems Design 45,000 Computer Wholesale 30,000 Electronic Instruments Computer Manufacturing 15,000 Communications Equipment 0 2007 2008 2009 2010 2011 2012 Source: Texas Workforce Commission. Q1 2007 to Q2 2012 Mirroring national trends, electronics manufacturing employment in Texas decreased by roughly 15% from 2007- Patents and Venture Capital 2012. As shown in the above chart, jobs in the state’s semiconductor sector were most affected, declining by 24%, Texas’ continued strength in the electronics as the industry continued to undergo significant consolidation industry is due in large part to the growing pipeline of electronics-related patents and globally. Although electronics production employment venture capital in the state. contracted statewide, significant employment Texas’ annual high-tech patent output increased by 37% from 2001-2011, gains were seen in non- and Texas ranked No. 2 nationally in manufacturing sectors of 2011 for total high-tech patents, the industry during this according to the U.S. Patent and period. The computer Trademark Office (USPTO). systems design sector, In July 2012, Dallas was selected as a which includes hardware location for one of four new USPTO and software design, as satellite locations. Dallas was chosen in well as the computer part because of the state’s growing equipment wholesale output of high-tech innovations. The sector, which includes office is expected to open in 2013. post-assembly distribu- From 2002-2012, venture capital firms tion and services, both added significant numbers of Texas invested nearly $5 billion in Texas jobs, particularly starting in late 2009. Additionally, despite electronics companies, according to declining head counts at Texas electronics firms, the state’s PricewaterhouseCoopers. electronics industry output increased by 47% from 2000-2010, due to productivity gains (see output chart on page 3). 6 OVERVIEW Electronics Education in Texas Number of Electronics-Related Degrees Awarded, 2009-2012 All Texas Public Universities, All Degree Levels Electrical, Electronics and Telecom Engineering 7,639 Computer and Software Engineering 1,951 Computer Science 8,048 Information Science & Technology 2,064 Mathematics and Physics 6,470 TOTAL 26,172 Source: Texas Higher Education Coordinating Board Top Ten Texas Universities for Electronics-Related R&D by FY 2011 Expenditures Total R&D Institution (Millions) Texas in Top Tier for Tech-Related Doctorates University of Texas (UT) at Austin $63.2 Texas A&M University $49.1 In 2011, the National Science Foundation Rice University (Houston) $41.9 ranked Texas among the top tier of U.S. states for number of doctorates awarded in UT at Arlington $12.4 tech-related fields: Texas Tech University (Lubbock) $12.0 No. 3 for All Doctorates Awarded UT at El Paso $9.7 No. 2 for All Engineering University of Houston $9.0 No. 2 for Electrical Engineering UT at Dallas $5.3 No.
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