Texas Instruments (TI) has secured a significant step forward in its expansion plans with a preliminary agreement for up to $1.6 billion in funding from the CHIPS and Science Act. This funding, proposed by the U.S. Department of Commerce, will support the construction of three new 300mm semiconductor wafer fabrication facilities (fabs) in Texas and Utah.
These new fabs are part of TI’s strategy to increase its internal manufacturing capacity to over 95% by 2030. The company anticipates receiving an additional $6 billion to $8 billion in Investment Tax Credits from the U.S. Department of Treasury for these qualified US manufacturing investments.
Beyond the direct financial support, TI is also expected to receive $10 million in proposed funding for workforce development. This will help the company create over 2,000 new jobs at TI, along with thousands of indirect jobs in construction, supply chains, and supporting industries.
Haviv Ilan, president and CEO of Texas Instruments, highlighted the significance of the CHIPS Act in bolstering the semiconductor ecosystem. “The historic CHIPS Act is enabling more semiconductor manufacturing capacity in the U.S., making the semiconductor ecosystem stronger and more resilient,” Ilan said. “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.”
U.S. Secretary of Commerce Gina Raimondo emphasized the national significance of the project. “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.” Raimondo highlighted the CHIPS for America program as a catalyst for American innovation and national security, with TI playing a crucial role in revitalizing domestic semiconductor manufacturing and development.
Governor Greg Abbott of Texas expressed pride in TI’s commitment to the state. “We are proud to work with Texas Instruments as they build new semiconductor fabs in Sherman and solidify Texas as the best state for semiconductors.” Abbott highlighted TI’s longstanding legacy in Texas, starting with the invention of the microchip, and its continued investment in the state through facilities in Dallas, Richardson, and Sherman. This latest project, he emphasized, builds upon this legacy and contributes to the creation of thousands of well-paying jobs for Texans.
Utah Governor Spencer Cox also welcomed TI’s expansion into the state’s Silicon Slopes region. “Utah is thrilled that Texas Instruments is expanding its manufacturing presence in the Silicon Slopes, furthering the impact Utahns have on critical semiconductor technology.” Cox emphasized the dual benefits of this investment, creating jobs and strengthening the nation’s supply chain.
This partnership between TI, the federal government, and the states of Texas and Utah represents a significant step towards bolstering America’s semiconductor industry, creating jobs, and securing the critical supply chains upon which the nation’s economy relies.
