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Get Embedded in Austin —
Where Digital Horsepower was Invented
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Austin's Automotive Industry [pdf]

For more information about our capabilities or to confidentially request information or a site search in our region, contact Tony Schum, Director, Economic Development, at 512.322.5681 or tschum@austinchamber.com.

Tony will be at several industry conferences around the country during 2008. See our Calendars page for more information.

Greater Austin, a metropolitan region of 1.5 million people, is a North American leader in digital technologies for automotive connectivity and content. Austin’s technology expertise, location and ample supply of talent make Central Texas an ideal locus for automotive IT research, development and manufacturing.

  • Austin is home to the most important suppliers of automotive chipsets and flash memory — among the region’s 3,300 tech companies with 100,000 employees.
  • Austin sits on I-35, the “NAFTA corridor,” 90 miles north of San Antonio, three hours from Dallas and six hours from Monterrey, Mexico.
  • Home to the University of Texas at Austin, a top ranked research university, Austin’s educational excellence and high quality of life attract the nation’s strongest workforce.
  • Texas’ low taxes and competitive regulatory environment help create one of America’s best business climates. Exceptional academic-business-government collaboration marks the Central Texas economy.

“As cars become smarter and require more software and hardware, Austin and Silicon Valley are the two regions in the U.S. that will emerge as the leaders.”
—Lindsay Chappell, Bureau Chief, Automotive News Magazine

“Austin is a high-tech city with an attractive quality of life. It is an appealing environment for the innovators we need at Freescale.”
—Michel Mayer, CEO, Freescale

“Singling out one reason why TASUS Texas located in the Greater Austin area is difficult, there are so many good ones. Top on the list is the regional character of the Greater Austin Chamber giving TASUS many different communities to choose from in one stop.”
—Yasuyuki Ohara, CEO, Tsuchiya Automotive Systems U.S.

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The Brain in Your Car Comes from Austin
Round Rock-based Cypress Semiconductor produces integrated circuits and chips used in engine controls, sensors, and various SRAM applications.

Austin-based Freescale Semiconductor’s PowerPC chip is the most pervasive automotive semiconductor in the world.

The world-class voice recognition software for GM OnStar was developed by IBM’s telematics architects in Austin. They also co-designed the PowerPC chip.

Austin’s Manning NavComp designs vehicle tracking software and integration solutions for commercial fleets.

Austin is the North American home of France’s Bluetooth technology giant Parrot, whose products include chipsets, algorithms, and protocol stacks for OEMs and partner suppliers.

Silicon Laboratories, mixed-signal ICs, including MCUs and satellite radio tuners, are used in a variety of automotive applications including XM Radio.

SMSC NA Automotive, whose Austin operations include an engineering design center, is a leading provider of MOST
(Media Oriented Systems Transport) technology, used in integrating infotainment systems into the automobile.

Spansion, spun off from AMD and Fujitsu, is a global leader in flash memory chip fabrication, an essential component in automotive, wireless, and consumer electronics technologies.

Austin’s Venkel is a leading supplier of surface mount passive components used in automotive electronics.

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Workforce

Young. Creative. Productive.
Ask CEOs, entrepreneurs, educators and researchers why Austin has stayed hot for nearly three decades and you’ll hear one common theme: It’s all about people.

The Central Texas workforce is among the most productive in the United States. Out of 363 metropolitan areas in the U.S., Austin ranks tenth in value added per production worker
hour. That’s double the productivity of both the state and the nation as a whole.

Educational Attainment of Persons 25 Years or Older, 2006

Source: Bureau of the Census.

Migrating talent from around the nation and world has helped bring metro Austin’s population to over 1.5 million. The 1990s saw a 48% increase in population — some of the fastest
growth in the nation. Growth has been averaging 3% annually since the 2000 Census. With a median age younger than the national average, nearly half of metro Austin’s
population is between ages 18 and 44.

Employment in High Tech Industries

  2006
High tech manufacturing 34,942
Computers & peripherals wholesalers 18,949
High tech information & other IT 28,177
Engineering, R&D, & labs/testing 17,975
Total 100,042
Source: Texas Workforce Commission.

Workforce Training Resources
Austin’s training providers include the Austin Community College, the Skillpoint Alliance and WorkSourceas well as the region’s universities and trade and technical schools. Their offerings include customized training programs for the semiconductor, automotive and information technology industries. Local training providers have shown a unique ability to adapt to the training needs of the private sector and are funded to meet the changing needs of business in
the future.

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Education

Within a 100-mile radius of Austin you’ll find 39 colleges and universities — including the University of Texas at Austin, one of America’s largest and a world-class research institution.
Training and experience garnered by graduates of UT Austin, which has annual research expenditures of $380 million, puts the school among high tech’s most well regarded
workforce pipelines.

UT Austin’s Electrical and Computer Engineering Department has ranked in the top 10 in the country for more than a decade. UT and other area institutions cooperate closely with local industry on both workforce training and research.

Colleges & Universities in the Austin Metro Area

  Enrollment
Fall 2006
Graduates, yr. ending June 2006
Assoc Bach Mast PhD 1st Prof
Four-Year Colleges & Universities
The University of Texas, Austin 49,738   8,942 2,829 796 647
Texas State University, San Marcos 27,503   4,517 1,051 15  
St. Edward’s University, Austin 5,224   734 293    
Southwestern University, Georgetown 1,277   298      
Concordia University, Austin 1,266 21 155 32    
Huston-Tillotson University, Austin 742   80      
Community Colleges
Austin Community College 31,585 1,063        
Temple College, Taylor Center 671 NA        
Grand Total 118,006 1,085 14,728 4,205 811 647
Source: Texas Higher Education Coordinating Board & U.S. National Center for Education Statistics.

Degrees Awarded in Select Science Fields, Austin Metro Area Institutions, Year Ending June 2005

Bachelor's Master's Doctoral
Computer & IS 416 102 13
Engineering 917 454 145
Physical sciences 187 56 70
Total 1,520 612 228
Source: National Center for Education Statistics.
Additionally, area community colleges and trade and technical schools award hundreds of certificates and associates degrees annually in an array of technical and precision production-related programs.
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Innovation

The University of Texas at Austin alone supports more than 90 organized research units, and Austin is also home to the celebrated SEMATECH research consortium. Some of the groundbreaking work being done in Austin includes:

Microelectronics, Wireless, Semiconductors & Software

Center for Electro Mechanics (UT Austin) — Research in high specific power electromechanical devices, energy storage systems, electric vehicle suspensions and vehicle power management systems. The center has joined with Texas Energy Conservation Office and other agencies to organize the Texas Electric Vehicle Program.

Embedded Signal Processing Laboratory (UT Austin) — Conducts cutting edge research in embedded real-time signal and image processing systems.

Microelectronics Research Center (UT Austin) — A NSF/NNIN-funded research laboratory contributing to advancements in microelectronic devices, integrated circuits,
and optoelectronic components.

SEMATECH — Conducts state-of-the-art research into new materials, processes, and equipment for semiconductor manufacturing.

Wireless Networking & Communications Group (UT Austin) — One of the nation’s largest wireless research labs conducts applied research in propagation and antennas, sensor and
ad-hoc networks, modulation and coding, signal processing, network security, network architectures, software and protocol performance.

Computational Research

Computer Architecture & Technology Laboratory (UT Austin) — A leader in the area of microprocessor architecture, workload characterization, native signal processing and
compiler support for innovative architectures.

Computer Engineering Research Center (UT Austin) — One of the leading research centers in the country for design and testing of VLSI, fault-tolerant systems, sequential synthesis, binary decision diagrams, timed/stochastic systems, distributed systems, computer architecture, and software engineering.

Institute for Computational Engineering & Sciences (UT Austin) — An interdisciplinary research center for computational sciences and engineering, mathematical modeling, applied mathematics, and software engineering.

Materials & Manufacturing Research

Advanced Manufacturing Center (UT Austin) — Coordinates research and education in manufacturing and materials processing including design, control, materials, measurements,
mechanics, modeling and thermal-fluid dynamics.

Advanced Materials Research Center (SEMATECH) — Focuses on creating leading-edge materials and capabilities for next-generation semiconductors, as well as cutting edge
research in nanotechnology and advanced high-tech areas.

Center for Materials Chemistry (UT Austin) — Brings the strengths of synthetic, analytical and physical chemistry to bear on problems related to solid materials.

High Performance Systems Research Group (UT Austin) — Conducts theoretical and applied research in high performance substrates.

Texas Materials Institute (UT Austin) — promotes interdisciplinary research in the area of materials.

Mechanical Engineering, Energy & Combustion Research

Center for Energy & Environmental Resources (UT Austin) — Focuses on efficient and economical use of energy and on ensuring a cleaner environment by developing, in cooperation with industry, processes and technologies that minimize waste and conserve natural resources.

Formula SAE (UT Austin) — The collegiate design competition was started in 1981 with four teams competing at UT Austin; today the Formula SAE competition draws more than 100
teams from universities around the world.

General Motors Foundation Automotive Research Laboratories (UT Austin) — Conducts research in alternative fuels, emissions control, engine modeling, and IC engines.

Thermal/Fluids Systems Group (UT Austin) — Conducts research on numerical simulation of turbulence, viscous and hypersonic flow and more.

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Infrastructure

The Austin region has the infrastructure — the physical, intellectual, and financial capital — to compete globally for investment and job creation. Austin boasts proven telecommunications,
transportation, electric and water capacities to satisfy diverse kinds of operations, from sensitive data center operations to semiconductor manufacturing, as well as Fortune 500 firms and international businesses. As a major metro economy and the state’s capital, Austin also provides
business with world-class business and professional services.

Favorable Real Estate Market
Opportunities abound for growing companies with long-term expansion plans. Thanks to an abundance of office and industrial space and a wide variety of environmental characteristics, the region can accommodate nearly any operation, large or small.

As of first quarter 2007, Austin had nearly 8 million square feet of vacant office space and a 12% office vacancy rate. An additional 5 million square feet of inventory is under construction. The industrial market offers over 7 million square feet of vacant space, including clean room space, and a 10% vacancy rate. Ample Class A space is available in a vibrant downtown as well as a variety of suburban markets. In addition, the area has several campus-style facilities that are available for lease. The Greater Austin Chamber can help your company locate the site that fits your needs.

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Location

The Austin area is an ideal location for OEMs and manufacturing suppliers. A prime example of this is TASUS Corporation’s recent location to Georgetown, TX. TASUS is a Tier 1 and Tier 2
supplier to Toyota.

Located on the U.S./Mexico/Canada trade route, or the I-35 NAFTA Corridor, Austin is between two developing OEM and Tier I supplier markets: San Antonio (Toyota) and Arlington/Dallas (GM). Austin is also within a one day drive of parts and assembly plants in Mexico. The southern edge of the Austin metro is intersected by east-west I-10.

Austin is linked to the world by a modern international airport served by 11 major airlines, over 300 daily arrivals and departures and direct flights to 99 destinations including six foreign cities.
Austin-Bergstrom International Airport also has a nearly 300,000 square foot cargo port that is one of the most sophisticated in the nation.

Non-stop Jet Destinations 2008

Interstate System Near Austin

 
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Cost Advantage

Texas consistently ranks as one of the nation’s most favorable business climates. In Texas, aggregate costs for real estate, energy, wages and taxes are below most states in the country.

Cost of Living
Compared to other major business centers, Austin is well known for offering affordable living. The National Association of Realtors reports that the median home price in Austin was $163,800 in 2005 while the national median was $219,000.

Cost of Living Index, 1st Quarter 2006

Source: ACCRA.

Low Tax Burden
Texas features no personal or corporate income tax, and ranks 45th among the 50 states in total taxes paid per $1000 of personal income..

State & Local Tax Burden Per Capita, 2004

Source: U.S. Bureau of the Census.

Competitive Labor Costs

Average Annual Salaries, May 2006

  All Occupa-
tions
Business & financial Computer & math Engine-
ering & arch.
Office Produc-
tion
Transp &
material moving
Austin $39,910 $57,790 $71,570 $64,680 $30,940 $28,140 $25,390
Chicago 43,430 65,870 71,410 65,940 32,670 30,220 33,130
Detroit 46,670 71,030 73,360 NA 33,310 41,910 40,810
Indianapolis 38,250 55,660 63,190 60,670 30,270 32,750 29,620
Lexington 36,110 49,620 55,310 63,510 29,030 34,260 28,610
Nashville 36,970 54,280 57,680 56,170 30,090 31,650 28,280
San Jose 59,990 74,740 94,590 90,670 39,770 36,440 30,610
Toledo 36,640 52,360 55,140 60,730 28,630 34,110 29,700
U.S. 39,190 60,000 69,240 66,190 30,370 30,480 29,460
Source: U.S. Bureau of Labor Statistics, Occupational Employment Statistics (OES) .
Note: Wage and salary estimates for detailed occupations are also available from the OES wage survey. (Nearly 500 unique occupations are reported for Austin.) The BLS also publishes an alternative occupational wage survey, called the National Compensation Survey, for Austin and other metropolitan areas that provides additional types of compensation measures.
Incentives for Emerging Technologies

The Emerging Technology Fund (ETF), along with other incentives programs such as the Texas Enterprise Fund, provides financial benefits to semiconductor businesses creating high quality new jobs in Texas. The goal of ETF is to expedite innovation and commercialization of research and increase higher education applied technology research capabilities in the state. A variety of state and local tax exemption and tax credit programs are also available. green energy industries.

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Quality of Life

What better balance can a city offer than being both the 'Best Place for Business and Careers' and the 'Live Music Capital of the World'? Austin pleases all in rankings ranging from 'Best City for Relocating Families' to 'Best Cities for Singles'. Other assessments consistently recognize the region as among the most inventive, creative, wired, rockin', educated, fit and loved.

  • Affordable and diverse neighborhoods, from urban lofts to hill country estates
  • A climate made for outdoor enjoyment and recreation nearly year round
  • Many professional and amateur sports venues and events
  • More fine restaurants and clubs per capita than any other U.S. city
  • A lush environment highlighted by parks, lakes and trails
  • A creative culture that supports the arts, music and the theater
  • Year-round festivals and celebrations for people of all ages
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