Direct CHIPS funding would be in addition to $6-$8 billion in tax credit
Texas Instruments has signed a preliminary agreement with the U.S. Department of Commerce to receive up to $1.6 billion in CHIPS and Science Act funding that will support semiconductor manufacturing in Texas and Utah.
That direct funding would be coupled with between $6 billion-$8 billion in investment tax credits to that TI can provide “geopolitically dependable” capacity for 300mm analog and embedded processing chips.
Texas Instruments said that the funding would support three new 300 mmm fabs that are already being constructed in Texas and Utah. There are two new fabs under construction at a TI facility in Sherman, Texas, which has the ability to support up to four fabs. In Lehi, Utah, TI is building a second 300mm wafer fab next to an existing fab.
TI said that the sites would produce semiconductors in 28nm to 130nm technology nodes to support its analog and embedded processing products. TI already plans to spend more than $18 billion through 2029 as part of its broader investment in manufacturing, including the three fabs.
Specifically, the $1.6 billion in CHIPS funding would support the construction of a cleanroom and completion of a pilot line for first production at the SM1 fab in Sherman, Texas; the construction of the shell for the SM2 fab in Sherman; and the construction of a cleanroom complete pilot line for first production in Lehi.
Texas Instruments said that it will create more than 2,000 company jobs across the three new fabs, plus “thousands” of indirect jobs for construction of and supplying the new facilities. The company also noted that it has “robust engagements” with more than three dozen community colleges, high schools and military institutions across the U.S. to develop a talent pipeline of prospective workers.
“The historic CHIPS Act is enabling more semiconductor manufacturing capacity in the U.S., making the semiconductor ecosystem stronger and more resilient,” said Haviv Ilan, president and CEO of Texas Instruments, in a statement. “Our investments further strengthen our competitive advantage in manufacturing and technology as we expand our 300mm manufacturing operations in the U.S. 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 analog and embedded processing chips our customers will need for years to come.”
The fabs will be powered entirely by renewable energy, according to TI, and the facilities meet LEED Gold standards for building efficiency and sustainability.
“By investing in semiconductor manufacturing, we are helping secure this vulnerable supply chain, boosting our national security and global competitiveness, and creating new jobs for Texans,” said Senator John Cornyn (R-Texas). “The chipmaking capabilities these resources will enable at Texas Instruments will help the U.S. reclaim its leadership role in the critically important semiconductor industry, and I look forward to seeing more Texas-led advancements in the years to come.”
“This proposed CHIPS funding will further support Texas Instruments’ investment in its new semiconductor fab in Lehi —and enhance Utah’s vital role in our national defense and economic success,” said Senator Mitt Romney (R-Utah).”I was an original sponsor of the CHIPS and Science Act—which made today’s announcement possible—because in order to compete on the world stage, we must continue to promote innovation, foster scientific talent, and expand research here at home. Texas Instruments’ expanded operations will help make the United States more self-reliant for chips essential to our national security and economy.”
“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, and create tens of thousands of jobs in Texas and Utah,” said U.S. 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 revitalize semiconductor manufacturing and development in the U.S.”
