Texas Instruments Inc., a leading player in the semiconductor industry, announced on Friday that it has reached a preliminary agreement with the U.S. Department of Commerce. This agreement could enable the company to receive up to $1.6 billion in direct funding via the CHIPS and Science Act, aimed at augmenting its 300mm semiconductor manufacturing capacities in Texas and Utah.
Additionally, Texas Instruments anticipates obtaining between $6 billion and $8 billion through the U.S. Department of Treasury's Investment Tax Credit for eligible U.S. manufacturing investments.
The company stated that the proposed direct funding from the CHIPS Act will bolster its investment exceeding $18 billion through 2029, marking a significant contribution towards its comprehensive manufacturing expansion plans.
Haviv Ilan, the President and CEO of Texas Instruments, commented, "The historic CHIPS Act is boosting semiconductor manufacturing capacity in the U.S., thereby strengthening and making the semiconductor ecosystem more resilient. We aim to scale our internal manufacturing to over 95 percent by 2030, creating a geopolitically reliable, large-scale 300mm capacity to meet our customers' needs for analog and embedded processing chips for years to come."
As the largest U.S. manufacturer of analog and embedded processing semiconductors, the company highlighted that the proposed CHIPS funding, combined with the investment tax credit, would facilitate the provision of 300mm capacity for its analog and embedded processing semiconductors.
This financing will support three 300mm semiconductor wafer fabs currently under construction in Texas and Utah. These interconnected, multi-fab sites—two in Sherman, Texas, and one in Lehi, Utah—will produce semiconductors in 28nm to 130nm technology nodes, optimizing cost, performance, power, precision, and voltage levels to meet the company's product requirements.
Texas Instruments also expects to generate over 2,000 new jobs across its three new fabs in Texas and Utah, along with thousands of indirect jobs in construction, supply chains, and supporting industries. The company is also slated to receive $10 million in proposed funding for workforce development.
U.S. Secretary of Commerce Gina Raimondo remarked, "The CHIPS for America program will catalyze American technology and innovation, enhancing our national security. TI is anticipated to play a significant role in the Biden-Harris Administration's efforts to revitalize semiconductor manufacturing and development in the U.S."
In pre-market trading on the Nasdaq, Texas Instruments shares rose approximately 2 percent, reaching $205.51.
