Why we're building a $150M chip fab in Texas
Most quantum computing companies outsource their fabrication. They send designs to foundries, wait months for silicon, and have limited control over process parameters. QLT is taking a fundamentally different path: after proving our technology with a $5M split-fab prototype, we will build a $150 million dedicated pilot fabrication facility in a Texas Opportunity Zone — the second phase of a three-stage capital plan that culminates in a $1.2B full-scale vertically integrated fab.
This is not ego. This is engineering logic combined with financial discipline.
Why vertical integration matters for quantum
QLT's processor is not a standard silicon photonic chip. It requires proprietary post-processing that no commercial foundry offers: advanced overlay deposition for ODR waveguides, proprietary all-optical switch integration, and heterogeneous material bonding at tolerances that demand process control far beyond what an MPW shuttle provides.
When you own the fab, you own the iteration cycle. External foundry runs take 3–6 months per cycle. In-house fabrication compresses that to 2–4 weeks. For a company developing a novel compute substrate, that speed advantage compounds exponentially.
The Texas advantage
By locating in a Texas Qualified Opportunity Zone, QLT captures a layered incentive stack worth $30–70M+ over 10 years:
Federal OZ 2.0: Capital gains invested in a Qualified Opportunity Fund are deferred for 5 years. All appreciation on the investment is 100% tax-free if held 10+ years. The program was made permanent by the 2025 "One Big Beautiful Bill Act."
Texas JETI Act: 50% school district property tax abatement for 10 years, with an additional 25% bonus for OZ-located projects — totaling 75% property tax reduction.
Texas CHIPS Act + TSIF: Direct grants for semiconductor manufacturing and R&D. Combined with federal CHIPS Act subsidies, this creates a dual-layer public funding mechanism.
Zero state income tax. Zero state capital gains tax.
The real cost
A $150M facility that captures $30–70M in tax incentives has an effective cost of $80–120M. In a state with no income tax, cheap power, and an existing semiconductor workforce (Samsung in Taylor, TI in Dallas, NXP in Austin). The math works. And the strategic value — absolute IP security, defense-readiness (ITAR compliance), and foundry-as-a-service revenue from excess capacity — makes it an asymmetric investment.
The company that owns its fab owns its destiny. The company that outsources its fab outsources its future.