Texas Instruments to receive $1.6 bn to help fund new plants in US
The money would give a boost to Texas Instruments’ planned investment of more than USD 18 billion through the end of the decade to build three new facilities, the U.S. Commerce Department said.
The US government has signed a preliminary deal with semiconductor manufacturer Texas Instruments to give the company up to USD 1.6 billion to help fund new facilities in the country.
The proposed direct funding comes under the CHIPS and Science Act, a package of incentives passed by US Congress in 2022 to boost research and semiconductor production in the country.
The money would give a boost to Texas Instruments’ planned investment of more than USD 18 billion through the end of the decade to build three new facilities, the U.S. Commerce Department said in a statement.
Two of the facilities will be in Texas and one in Utah, and are expected to generate over 2,000 manufacturing jobs, the department added.
The US is increasingly wary of relying on China for its semiconductor needs.
“During the pandemic, shortages of current-generation and mature-node chips fueled inflation and made our country less safe,” said U.S. Secretary of Commerce Gina Raimondo. “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 thousands of jobs in Texas and Utah.”
Texas Instruments chief executive Haviv Ilan said the company plans to grow its in-house production to more than 95 percent by the end of the decade. “Our investments further strengthen our competitive advantage in manufacturing and technology as we expand our 300mm manufacturing operations in the U.S,” said Ilan.
Texas Instruments also expects to receive USD 6 billion to USD 8 billion in investment tax credit from the Treasury Department, the company said.
