Texas Instruments has secured up to $1.6bn in proposed direct funding from the US Department of Commerce under the CHIPS and Science Act. The funding, formalised in a preliminary memorandum of terms, will support the construction of three 300mm wafer fabrication facilities in Texas and Utah. In addition to the direct funding, Texas Instruments will receive approximately $6bn to $8bn through the US Department of Treasury’s Investment Tax Credit.
This financial support will reinforce the company’s role as a supplier of analogue and embedded processing semiconductors, addressing the increasing demand across various industries.
Texas Instruments’ central role in US chip industry
Founded over 90 years ago, Texas Instruments has transitioned from manufacturing vacuum tubes and transistors to becoming a major US manufacturer of analogue and embedded processing semiconductors. The company’s chips are used in automotive systems, medical equipment, and smart home appliances.
The CHIPS Act funding will support Texas Instruments’ planned investment of over $18bn through 2029. This investment includes the development of the SM1 and SM2 fabs in Sherman, Texas, and the LFAB2 fab in Lehi, Utah. These facilities will produce semiconductors with technology nodes from 28nm to 130nm.
“Our investments further strengthen our competitive advantage in manufacturing and technology as we expand our 300mm manufacturing operations in the US,” said Texas Instruments president and CEO Haviv Ilan. “With plans to grow our internal manufacturing to more than 95% by 2030, we’re building geopolitically dependable, 300mm capacity at scale to provide the analogue and embedded processing chips our customers will need for years to come.”
Additionally, the firm claims it will generate more than 2,000 jobs at the Texas and Utah sites, along with additional thousands of indirect job opportunities in construction, supply chains, and related industries.
Texas Instruments’ new 300mm fabs will be powered entirely by renewable energy and will meet LEED Gold standards for structural efficiency. These facilities are designed to reduce waste and improve water and energy consumption per chip.
“With this proposed investment from the Biden-Harris Administration in TI, a global leader of production for current-generation and mature-node chips, we would help secure the supply chain for these foundational semiconductors that are used in every sector of the US economy, and create tens of thousands of jobs in Texas and Utah,” said the US Secretary of Commerce, Gina Raimondo. “The CHIPS for America program will supercharge American technology and innovation and make our country more secure – and TI is expected to be an important part of the success of the Biden-Harris Administration’s work to revitalise semiconductor manufacturing and development in the US”
CHIPS and Science Act
Enacted in August 2022, the CHIPS and Science Act, aims to revitalise the US semiconductor industry with nearly $53 billion in federal funding.
The Act seeks to boost domestic semiconductor manufacturing, research and development, and workforce training, addressing the US’s declining share in global semiconductor production. It also offers a 25% tax credit for capital investments in semiconductor manufacturing.
Since its enactment, the CHIPS Act has led to over $395bn in investments by various companies in semiconductor and electronics manufacturing.
Major industry players, including Intel, Micron, and Samsung, have announced substantial projects under the Act’s provisions.
The Act has also facilitated the establishment of the National Semiconductor Technology Center (NSTC) and regional Tech Hubs, aiming to enhance US semiconductor production and create over 115,000 jobs.
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