#32 – Inside Our Industry – Silicon Valley is Moving to TexasPosted on
Last week we shared information about the population migration and the states losing and gaining population. This week, we are sharing companies on the move, from high-cost states to more business-friendly, lower cost-of-living states.
Silicon Valley is Moving to Texas
Randal O’Toole, Cato Institute, Dec. 22, 2020
On December 1st, Hewlett-Packard–which has been headquartered in Silicon Valley since 1939–announced that its corporate headquarters would move to Houston. On May 9, Elon Musk announced that Tesla was moving its headquarters to “either Texas or Nevada,” but on December 7, he revealed that he personally had moved to Austin. On December 11, Oracle announced that it was also moving its headquarters to Austin.
Companies have been migrating from California to Texas for many years, but I don’t think three such large companies have all made such announcements in such a short time. Hewlett-Packard is listed on the Fortune 500 twice, one as HP (which makes office products) and one as Hewlett-Packard Enterprise (which runs server farms). Combining them would make HP #35 on the list, right behind Dell, which is already headquartered in Texas.
Even before moving its headquarters, Hewlett-Packard had more employees in Houston than any other city. This reflects past trends where Silicon Valley companies kept their highest-paid workers in San Jose but built their factories in other cities where housing was more affordable. Apparently, California taxes and housing prices have now gotten too high even for Silicon Valley executives.