BRYAN, Texas (KBTX) – Records filed with the Texas Comptroller’s Office reveal that San Francisco-based technology startup Substrate Inc. plans to invest a massive $10 billion into Texas A&M University’s Relis Campus.
The LLC application filed with the Texas Secretary of State states the proposed facility is an expansion of Substrate Inc. and has a registered address at the San Francisco Post Office.
The project, operating under the name America’s Foundry Bryan, LLC/Project Factory One, is said to be the first of its kind in the United States focused on cutting-edge semiconductor manufacturing and is expected to bring significant economic benefits to the Brazos Valley.
The venture is committed to bringing $10 billion in transformative investment to the Brazos Valley. Substrate appears to be led by CEO James Proud, known for his work at tech startups such as Hello and Config, according to recently released documents. Hello developed sleep-tracking software but closed in 2017 after failing to find a buyer, according to online records. Config develops software to manage the hardware development process.
The city of Bryan, Brazos County, the Bryan Independent School District and Texas A&M all approved a series of tax incentives to secure this major investment, which beat out 15 other states in a competitive site selection process. Since the tax incentive proposal was announced, local agencies and municipalities have been tight-lipped about the deal, citing non-disclosure agreements, but they haven’t been shy about sharing their opinions on the idea of the company coming to Aggieland.
“I think this is the biggest thing that’s ever happened since A&M University was established in Brazos County. If this goes through,” Texas A&M University President John Sharp said, “it would create at least 1,800 full-time jobs, obviously many more during the construction phase, and it’s a minimum investment of $10 billion.”
“This is a landmark project for Bryan,” said Mayor Bobby Gutierrez, “and we are committed to bringing this here. The economic impact and job creation potential is enormous.”
Construction on the RELLIS campus’ 288-acre site is expected to begin this year and be completed by 2029. The facility is projected to generate more than $100 billion in economic impact over the next 40 years, including creating 800 construction jobs initially and a total of 2,000 jobs once operational.
Economic impact and construction schedule
Construction on the 288-acre RELLIS campus is scheduled to begin this year and be completed in 2029. Called Project Factory One, the facility is expected to have an economic impact of more than $100 billion over the next 40 years, including 800 construction jobs over the next six years and an eventual total of 2,000 jobs.
Economic benefits of the project include a significant increase in local and state GDP and significant new revenues for businesses.
“This will be a milestone not only for Brazos County and the city of Bryan, but for the United States. This is truly an incredible project,” Sharp added.
Competitiveness
Approval for the project followed a competitive site selection process in which Substrate Inc. evaluated potential sites across the U.S. Texas, Oregon and New York were finalists, with Texas ultimately winning due to its attractive tax incentives and strategic location.
“They looked at 16 states and decided on Bryan, Texas, and chose the RELLIS campus because of the hypersonic aircraft, autonomous vehicles, Department of Defense research that goes on there, defense sector testing,” Sharp added.
According to online records, Texas and the RELLIS campus stood out in Substrate Inc.’s site selection process due to several compelling factors. The state’s favorable tax environment, robust transportation infrastructure and the strategic location of Texas A&M’s RELLIS campus provided significant advantages. Texas offered significant incentives, including competitive property tax rates through the Joint Enterprise Tax Incentive (JETI) program, making it a more attractive option than other states such as Oregon and New York.
The RELLIS campus’ advanced research and development capabilities, combined with a collaborative relationship with Texas A&M University, further solidified Texas as a desirable location. The partnership, codified in a non-binding Memorandum of Understanding, promised mutual benefits and aligned with Substrate Inc.’s goals of utilizing cutting-edge manufacturing methods and employing a skilled workforce. These factors combined made Texas the outstanding choice for Substrate Inc.’s potential site for a groundbreaking semiconductor manufacturing facility.
Tax incentives
Todd McDaniel, senior economic development adviser for the City of Bryan, highlighted the economic benefits at a recent City Council meeting.
“The first year projected guaranteed value is $100 million. With an 80 percent tax abatement, that value will naturally increase as the project develops over the next 10 years,” McDaniel said.
According to the tax abatement agreement filed with the City of Bryan, the projected revenue from the city’s new tax assessment after guaranteed values and annual tax abatements will be $124,800 in the first year and $31.2 million each year from years 7 through 10. For reference, the Brazos Central Appraisal District’s estimated net taxable value for the city in 2024 is $9.9 billion.
“The expected guaranteed value is $100 million at an 80% tax abatement, which will naturally increase as the project develops over the next 10 years. In year seven, it will reach an estimated guaranteed value of $10 billion at a 50% tax abatement,” McDaniel added.
America’s Foundry Bryan LLC plans to leverage multiple funding sources to support the operation, including the Texas Semiconductor Innovation Fund, the Texas Enterprise Fund and the federal CHIPS incentive program.
Real Estate and Investment Details
America’s Foundry Bryan’s application to build and operate an advanced semiconductor manufacturing facility includes details of a variety of assets and investments, according to online records.
- Land Improvement: Extensive improvement and preparation of undeveloped land to facilitate new construction.
- A 3 million square foot advanced semiconductor manufacturing facility, including an administration building, central utility building, infrastructure, machine shop, receiving and warehousing facilities, and grounds and road infrastructure.
- Processing Equipment and Tools: Acquire all the necessary machines and tools essential for semiconductor manufacturing.
- Materials and Equipment: Procurement of materials and equipment to support manufacturing operations in auxiliary buildings.
- Tangible assets: The acquisition of additional assets that are integral to or support the production process.
What’s next?
If all goes well, construction of Substrate’s semiconductor manufacturing facility is expected to begin in the fourth quarter of 2024 and be completed in 2028, according to online records. Commercial operations are expected to begin in 2030, the first year of the incentive period. This important development will be closely monitored as it is expected to bring significant economic growth and job opportunities to the Brazos Valley.
Online Public Records
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