Hot Spots

Quick--name the place where startup companies are challenging the giants of the personal-computer industry. This same region is home to scientists and engineers who are inventing the semiconductors and computers of the 21st century. And, oh yes, this area has a great living standard, a top-level university, and lively rhythm-and-blues bars.

If you guessed California's Silicon Valley or Boston's Route 128, you're wrong. It's the "Silicon Hills" around Austin, Texas. From their vantage point near the Texas state capital, nestled in picturesque, rolling hills, local heroes Dell Computer Corp. and CompuAdd Corp. are muscling into the PC industry with aggressive marketing and pricing. Microelectronics & Computer Technology Corp. and Sematech Inc. are busy designing next-generation computers and semiconductors. Nearby, IBM and Motorola Inc. are jointly creating a new microprocessor. Result: While the rest of Texas stumbles along, Austin is booming. Its jobless rate rests at a mere 4.5%, thanks to the 55,000 jobs provided by Austin's 450 high-tech companies.