Texas Instruments will receive up to $1.6 billion in direct funding from the U.S. Commerce Department to support the construction of three new semiconductor manufacturing plants, the company announced on Friday. This funding, provided under the CHIPS and Science Act, will aid the development of two facilities in Texas and one in Utah.
The company has committed to investing $18 billion by 2029 for these projects, which are projected to generate approximately 2,000 manufacturing jobs. In addition, Texas Instruments anticipates receiving $6 billion to $8 billion in investment tax credits from the U.S. Treasury Department, as well as $10 million for workforce development initiatives.
CEO Haviv Ilan highlighted the company’s goal to increase its internal manufacturing capacity to over 95% by 2030. “We are expanding our 300mm capacity to meet the growing demand for analog and embedded processing chips,” he said.
The CHIPS Act, passed in 2022, aims to boost domestic semiconductor production and offers up to $52.7 billion in funding, including $39 billion in subsidies for production and $11 billion for research and development.
The Biden Administration has already provided Intel with nearly $20 billion in grants and loans and awarded $6.1 billion in grants to Micron Technology this year under the CHIPS Act. U.S. Secretary of Commerce Gina Raimondo noted that this investment in Texas Instruments would help secure the supply chain for crucial semiconductors used across various sectors of the U.S. economy. Texas Instruments, which serves a broad range of industries including smartphones and automobiles, saw its shares rise 1.5% in premarket trading following the announcement.
