Photo Credit:Photo: Texas Instruments
Texas Instruments (TI) has signed a preliminary agreement with the U.S. Department of Commerce to receive up to $1.6 billion in proposed funding through the CHIPS and Science Act. This funding will support the construction of three 300mm semiconductor wafer fabs in Texas and Utah, bolstering domestic chip production and enhancing geopolitical resilience in the semiconductor supply chain.
TI's president and CEO, Haviv Ilan, emphasized the importance of this investment, stating, "The historic CHIPS Act is enabling more semiconductor manufacturing capacity in the U.S., making the semiconductor ecosystem stronger and more resilient." Ilan further noted that these investments would strengthen TI's competitive advantage in manufacturing and technology as they expand 300mm manufacturing operations in the U.S.
The proposed funding will support TI's investment of over $18 billion through 2029, focusing on three new wafer fabs: two in Sherman, Texas (SM1 and SM2), and one in Lehi, Utah (LFAB2). These facilities will produce semiconductors using 28nm to 130nm technology nodes, crucial for TI's broad portfolio of analog and embedded processing products.
U.S. Secretary of Commerce Gina Raimondo highlighted the strategic importance of this investment, saying, "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 U.S. economy."
The economic impact of this expansion is significant, with TI expected to create over 2,000 new company jobs across the three fabs, along with thousands of indirect jobs in construction, suppliers, and supporting industries. Texas Governor Greg Abbott praised the project, stating, "Texas Instruments invented the microchip in Texas, and we are honored to be home to TI's semiconductor manufacturing facilities in Dallas, Richardson and Sherman."
In addition to the CHIPS Act funding, TI anticipates receiving an estimated $6 billion to $8 billion from the U.S. Department of Treasury's Investment Tax Credit for qualified U.S. manufacturing investments. This combined support will help TI achieve its goal of growing internal manufacturing to more than 95% by 2030, ensuring a geopolitically dependable supply of essential analog and embedded processing semiconductors.
The company is also committed to sustainable manufacturing practices, with plans for its new 300mm wafer fabs to be entirely powered by renewable electricity and designed to meet LEED Gold standards for structural efficiency and sustainability.
This investment in TI's semiconductor manufacturing capabilities represents a crucial step in strengthening the U.S. position in the global semiconductor industry, addressing supply chain vulnerabilities, and fostering technological innovation for years to come.
