What big tech could mean to a small Texas town
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A sign just off the town square. Photo courtesy of Cormac West
As it becomes a hub for semiconductor manufacturing, Sherman — with its quaint town square and frontier history — will likely change considerably.
What's next: Once the new $30 billion Texas Instruments campus and the $5 billion GlobiTech facility are both up and running, the city is expected to court companies that make the circuit boards used in the industries that rely on chip technology, including phones, vehicles and laptops.
- That could lead to an entire semiconductor ecosystem in a town that used to thrive on the railroad and cotton industries.
What they're saying: "Suppliers will set up shop in the area to be closer to the chip producer, so that you have more direct access both logistically, for easier cheaper delivery and for better collaboration," Bloomberg semiconductor analyst Paula Penkal told the Dallas Morning News.
Zoom out: Another small Texas town, Taylor — northwest of Austin — is bracing for a similar boom after Samsung announced it will build a $17 billion semiconductor manufacturing facility there.
Of note: Sherman is named after General Sidney Sherman, a hero of the Texas Revolution, according to the city's website.
The big picture: Sherman's population, now around 45,000, could double over the next five to 10 years, City Manager Robby Hefton told the Dallas Morning News.
By the numbers: After tax breaks from the city and county, the first phase of the Texas Instruments project is expected to bring in between $150 million and $280 million in taxes, per the DMN.
- The GlobiTech project could generate between $160 million and $240 million in tax revenue.
The bottom line: That could mean hearty investments in parks, infrastructure, police and fire departments, and the local school district.