Governor Abbott announces massive AI tech investment in North Texas

AUSTIN, Texas - Texas Governor Greg Abbott announced plans to establish the production of an artificial intelligence (AI) power and infrastructure-related solutions manufacturing facility in McKinney, Texas.

The project involving Taiwanese electronics manufacturer LITEON is expected to bring hundreds of jobs and nearly $1 billion in investment as Texas continues its push to attract technology manufacturing to the state.

Massive capital boost and job creation in North Texas

(Photo by Josep LAGO / AFP) (Photo by JOSEP LAGO/AFP via Getty Images)

What we know:

Gov. Greg Abbott announced on Monday that the project's initial phase includes a $307 million capital investment and the creation of 500 jobs. In the release, Abbott says that the state is providing $3.5 million with a Texas Enterprise Fund grant, along with a $100,000 Veteran Created Job Bonus.

The Texas Enterprise Fund is a performance-based incentive program administered through the governor's office. Grants are awarded to companies considering Texas against competing locations in other states and are tied to job creation and capital investment commitments.

The facility will design and manufacture AI-powered systems, along with AI infrastructure-related solutions, a trending area of rapid growth in Texas as companies expand data center capacity and infrastructure.

LITEON and McKinney leaders react to the tech deal

CANADA - 2025/12/30: In this photo illustration, the Lite-On Technology Corporation logo is seen displayed on a smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)

What they're saying:

LITEON said it expects to invest about $919 million into the project and create more than 600 jobs over the course of the project.

"LITEON's expansion in Texas represents a historic milestone for our company," Chairman Tom Soong said in a statement.

McKinney officials said the project will strengthen the city's growing advanced manufacturing sector. Mayor Bill Cox said the investment will create new opportunities for residents while reinforcing the city's appeal to technology companies.

The other side:

Abbott said the project reinforces Texas' position as a hub for advanced electronics manufacturing, research and development.

"Texas is where the world invests and innovates," Abbott said in a statement announcing the expansion.

Greg Abbott

Dig deeper:

Founded in Taiwan in 1975, LITEON is a global manufacturer specializing in power management systems and optoelectronics. The company develops products for cloud computing, automotive electronics, 5G communications and AI infrastructure.

Future of AI manufacturing in North Texas

What's next:

The announcement adds to a series of major manufacturing investments in North Texas, particularly in sectors tied to semiconductors, electronics and artificial intelligence.