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- Select One - Fast Facts TI Businesses TI Leadership Kilby Center Vision, Strategy &   Values History of Innovation Corporate Citizenship Investor Relations TI News TI Ventures EDI > Overview > TI Unveils The Kilby Center > Kilby Center Facts > Gift to Kilby Awards    Foundation > The Chip That Jack Built    Changed the World > Industry Impacts Economies > Approaching the New    Millennium > What Others Are Saying > An Interview With Jack Kilby > Jack Kilby Biography "High technology firms create new industries, such as electronic commerce and mobile cellular communications and revitalize old ones such as autos and textiles. The electronics and information technology industry employed more than 4 million workers in 1995. It was the single largest manufacturing employer in the United States with some 1.9 million workers...The economic impact of the high-tech industry is enormous, whether measured by employment, payroll, wages or exports." Cyberstates, American Electronics Association

DALLAS (September 9, 1997) — The high technology industry has been one of the fastest growing industries in the world, as well as in the U.S., the state of Texas and the Dallas/Fort Worth area. It has the potential to outpace its historical 15% annual growth. High-tech industry depends upon semiconductors, the "microchips" that power and control computers, automobiles, telephones and other devices. Impact on the Global Economy Texas Instruments Incorporated (TI) is a global semiconductor company and the world's leading designer and supplier of digital signal processing solutions, the engines driving the digitization of electronics. The company has manufacturing or sales operations in more than 25 countries, and employs more than 43,000 people worldwide. Since TI engineer Jack Kilby built the first integrated circuit in 1958, the global semiconductor market has grown to $132 billion (1996), and the electronic end equipment market exceeds $950 billion. Rising semiconductor content in electronics equipment and the emergence of new markets in developing countries, plus strong worldwide growth in the communications and computer sectors, are expected to boost the semiconductor business long term annual growth to 15% to 20%. Semiconductor content in electronic end equipment increased from 4% in the 1970s to 16% in 1996. Today, semiconductors account for between 30% and 40% of the cost of a personal computer, and about $100 worth of semiconductors are in each cellular phone. About 15 million new U.S.-built passenger cars and light utility vehicles were sold in the U.S. during 1996, each typically containing about $140 worth of semiconductor devices. Impact of High-Tech on U.S. Economy The high-tech industry is a growing contributor to the U.S. economy: High-tech is now about 4.5% of gross domestic product (GDP) compared to 1% twenty years ago in real terms (1992 dollars). According to a March 31, 1997 article in BusinessWeek, in the past three years, the high-tech sector has contributed 27% of the GDP, compared with 14% for residential housing and only 4% for the auto sector. Growth of high-tech has also helped reduce inflation. Since 1985, prices of high-tech capital goods (such as personal computers, telecommunications equipment and instruments) have declined an average of 4.5% per year, while prices in the rest of the economy have increased an average of 3% per year. In real terms, high technology electronic equipment makes up about 20% of total consumer durable spending, compared to 7% ten years ago and 4% twenty years ago. In nominal terms this means that the average U.S. spending per household on high-tech consumer electronics has increased from less than $100 in 1975 to about $850 per year in 1996. BusinessWeek also estimated the number of U.S. workers in the high-tech sector at 9.1 million, including those in core and associated industries and programmers, network technicians and other high-tech jobs embedded in the rest of the economy.

"The Dallas metropolitan area accounts for 38% of Texas' 314,000 high-tech workers...the North Central Texas Council of Governments has projected the (Telecom) Corridor's employment, which now stands at 80,000, to reach approximately 127,000 by 2020, a figure that edges closer to the council's projection of 135,000 for Dallas' Central Business District."... Texas Business, May 1997

The Importance of High-Tech industry to Texas "The history of Texas lies in cattle and oil. But increasingly, the future of the state is becoming linked with the ever-evolving high-tech industry. High-tech employment has grown more than twice as fast in Texas as it has in the nation during the 1990s...The high-tech expansion has had an indirect impact on the state's economy by keeping other industries humming...One of the best examples of the indirect effects is the impact on the state's construction and real estate industries. On the average, wages in the high-tech industry have been growing faster than those in other industries, and high-tech workers in Texas earn 36% more than workers in non-high-tech manufacturing." Southwest Economy High-tech industries are catalysts for Texas' economy: For every dollar of spent by semiconductor manufacturers, an additional $2.33 is added to the Texas economy (compared with $1.79 for all manufacturing). Texas, as the nation's second leading exporter, is among those states taking the lead in high-tech's global expansion. Texas exports have increased about 13% per year since 1987 to $74 billion in 1996. Electronics was the number-one Texas export in 1996, making up 22% of the state's total exports in the first quarter of 1997. High-tech products and equipment comprised about 70% of total Texas exports. High-tech industries are valuable to Texas because of their strategic significance to the future economy and because they provide thousands of high-wage, high value-added jobs. While total manufacturing employment in Texas grew only 11% from 1986-96, high-tech instruments manufacturing grew 92%. Average salaries in high-tech manufacturing sectors such as the semiconductor industry are more than $40,000 per year, almost twice the annual incomes in service industries. Texas ranks second in high-tech employment, according to the recent "Cyberstates" report of the American Electronics Association. Forty-eight out of every 1,000 private sector workers in Texas are employed by high-tech firms. Texas has emerged as one of the world's foremost regions for the production of electronic components according to Texas in the Global Economy: A Profile of the Microelectronics Industry (December 1995). This study says that: Texas accounts for one in every 10 microelectronics jobs in the U.S. and 13% of the nation's annual shipments in this industry. New capital expenditures per employee in the Texas microelectronics industry are more than 50% above the national average. The annual value added per employee in the Texas microelectronics industry is 28% higher than the U.S. average in the industry. Impact on the Dallas Area "Most of the rapid growth of Texas' manufacturing sector over the past two years has been driven by high Technology industries. In 1994 and 1995, computers/industrial machinery and electronics together accounted for over 60 percent of the 22,000 annual gain in total manufacturing jobs...Most of the activity has been in the Dallas-Fort Worth Metroplex and the Austin area." July 1996 "Texas Economic Quarterly" Texas State Comptroller of Public Accounts Founded and headquartered in Dallas, Texas, TI is the fifth largest employer. The company has made tremendous investments in research and development (R&D), and is projected to spend $1.1 billion this year. R&D stimulates new businesses and innovations that create new industries, and the impact of research and development dollars is similar to that of manufacturing, doubling in economic impact for each dollar spent. TI's new Kilby Center and the new wafer fab DMOS 6 together represent an investment of more than $1 billion. Their construction added the equivalent of $200 million into the local economy, and their operation will continue to positively impact Dallas' economy. They will be staffed by approximately 1,600 employees with an annual payroll of $85 million. The facilities will directly add more than $240 million annually to the local economy, not including new jobs and new businesses moving to the area to support them. With the multiplier effect, the annual economic impact totals $480 million. SOURCES: Global Economy WSTS TI SC Group Market Intelligence U.S. Economy "The New Business Cycle," BusinessWeek, March 31, 1997 CyberStates, American Electronics Association; 1997 TI Corporate Economic Analysis Business Week, March 31, 1997, p. 58 Consumer Electronics Marketing Association Texas Economy "Silicon Prairie: How High Tech is Redefining Texas' Economy," Southwest Economy, Federal Reserve Bank of Dallas, May/June 1997 "The Race is on in Richardson," Texas Business, May 1997 Texas in the Global Economy: A Profile of the Microelectronics Industry (December 1995), Texas Department of Commerce. CyberStates, American Electronics Association; 1997 Various reports from the Texas Comptroller of Public Accounts (Fiscal Notes; Economic Quarterly) and Texas Labor Market Data. 1996 Texas Exports by Industry, Texas Department of Commerce Texas Dept. of Commerce News Release, July 3, 1997 Other: TI Corporate Economic Analysis

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