Texas Instruments secures $1.6 billion in CHIPS Act funding
The US Department of Commerce says it will grant Texas Instruments (TI) up to USD 1.61 billion in direct funding under the CHIPS Incentives Program.
The funding will support the construction of three new 300mm manufacturing facilities, two in Texas and one in Utah, in a bid to address vulnerabilities in the semiconductor supply chain and enhance US economic and national security.
“Shortages of current-generation and mature-node semiconductors were one of the driving forces behind supply chain disruptions during the pandemic, fueling innovation and putting our national security at risk,” says US Secretary of Commerce Gina Raimondo, in a press release. “With this major investment in TI to expand U.S. capacity of these foundational semiconductors, we are strengthening our economic security, making our country safer, and creating thousands of jobs in Texas and Utah.”
The investment is part of TI’s broader USD 18 billion project to expand its production capacity through the end of the decade. According to the Department of Commerce, the funds will be distributed as TI meets key project milestones. The initiative is expected to create over 2,000 manufacturing jobs.
TI says that it also expects to receive an estimated USD 6 billion to USD 8 billion from the US Department of the Treasury's Investment Tax Credit for qualified US manufacturing investments.
“As the largest analog and embedded processing semiconductor manufacturer in the U.S., TI is uniquely positioned to provide dependable, low-cost 300mm semiconductor manufacturing capacity at scale,” says Haviv Ilan, president and CEO of Texas Instruments. “The increasing number of electronic devices in our lives depend on our foundational chips, and we appreciate the support from the U.S. government to make the semiconductor ecosystem stronger and more resilient.”
