The next American tech hub might be … Sherman, Texas

After securing promises of more than $35 billion in investments from several international corporations that make semiconductors, the city of Sherman — about an hour and a half north of Dallas, near the Oklahoma border — is on the verge of becoming a global technology hub.

Driving the news: Earlier this week, the U.S. Senate agreed to move forward with legislation that would send more than $52 billion in subsidies and tax credits to companies that build semiconductors in the United States.

• Yes, but: Weeks of partisan jostling put the bill in jeopardy, despite pleas from the Biden administration.

Why it matters: A shortage of semiconductors has led to global supply chain woes and stymied the production of everything from vehicles to home appliances.

• Earlier this year, the Department of Commerce announced that American companies using the chips were down to a five-day supply.
• Some of the proposed investments — in Sherman and elsewhere in the U.S. — could hinge on the pending legislation.

What's happening: GlobiTech, a subsidiary of Taiwan-based GlobalWafers Co., recently agreed to build a $5 billion semiconductor manufacturing plant in Sherman.

• It is expected to bring 1,500 jobs to the city of 45,000.
• GlobiTech was also considering sites in Ohio and South Korea.

State of play: To lure GlobiTech, the Sherman Economic Development Corp. offered $20 million in cash payments and the sale of nearly 150 acres of land, worth over $14.4 million, for $1 an acre, per the DMN.

• The Texas Enterprise Fund also contributed a $15 million grant.
• The city of Sherman, Grayson County and Grayson College all offered tax incentives, and the city offered a discount on water bills.

• Because it's close to Lake Texoma, one of the few Texas reservoirs at full capacity, Sherman also has access to the large amount of water required in semiconductor manufacturing.

Flashback: In May, Dallas-based Texas Instruments broke ground on what's expected to be a $30 billion, four-factory semiconductor manufacturing campus in Sherman.

• In 2018, Apple supplier II-VI (then known as Finisar) opened a factory in Sherman, producing parts for the iPhone.

Threat level: Intel announced the company will delay its $20 billion chip site in Ohio if Congress fails to pass the subsidy bill, and GlobiTech's CEO told the DMN his company is "in the same boat."

What we're watching: Texas Instruments has said the first factory could produce tens of thousands of 300mm wafer semiconductor chips a day by 2025.

• GlobiTech has said its new Sherman facility could eventually produce 2.4 million silicon wafers every month.