Texas Instruments (TI), a leading player in the semiconductor industry, recently announced a significant milestone that will strengthen its manufacturing capabilities in the United States. The company has signed a tentative agreement with the U.S. Department of Commerce to receive up to $1.6 billion in funding through the CHIPS and Science Act. This funding will support the construction of three advanced semiconductor manufacturing plants, or wafer fabs, in Texas and Utah. This move is part of TI’s broader strategy to expand its manufacturing capacity and ensure a stable supply of critical chips for years to come. Additionally, TI expects to benefit from substantial tax credits, further enhancing its investment in U.S. manufacturing.
Key Details:-
- Tentative Agreement for Funding: Texas Instruments has signed a preliminary, non-binding agreement with the U.S. Department of Commerce to receive up to $1.6 billion in funding. This financial support is aimed at assisting the construction of three 300mm wafer fabs currently being built in Sherman, Texas, and Lehi, Utah.
- CHIPS and Science Act: The funding is provided under the U.S. CHIPS and Science Act, a legislative initiative designed to boost domestic semiconductor manufacturing and research. This act is a part of the U.S. government’s efforts to reduce dependency on foreign-made semiconductors and strengthen the nation’s technological infrastructure.
- Additional Tax Incentives: Beyond the $1.6 billion in direct funding, Texas Instruments also anticipates receiving between $6 billion and $8 billion from the U.S. Department of Treasury’s Investment Tax Credit. This credit is intended for qualified U.S. manufacturing investments, further supporting TI’s expansion plans.
- Expansion of Manufacturing Capacity: Texas Instruments is focused on significantly expanding its internal manufacturing capacity, aiming to produce over 95% of its products in-house by 2030. The three new wafer fabs will play a crucial role in achieving this goal, allowing TI to manufacture the analog and embedded processing chips that are essential for a wide range of industries.
- $18 Billion Investment Through 2029: The funding and tax incentives will contribute to Texas Instruments’ broader investment strategy, which includes allocating over $18 billion by 2029 for expanding its manufacturing capabilities. This investment underscores the company’s commitment to maintaining a strong presence in the semiconductor industry and meeting the growing demand for its products.
- Job Creation and Economic Impact: The construction and operation of the three new wafer fabs are expected to create over 2,000 new jobs at Texas Instruments. Additionally, the project will generate thousands of indirect jobs in construction, supply chains, and supporting industries. TI also anticipates receiving $10 million in funding for workforce development to train and prepare its new employees.
- Sustainability Efforts: Texas Instruments is committed to sustainability, as demonstrated by its plan to power the new 300mm wafer fabs entirely with renewable electricity. This initiative aligns with the company’s broader environmental goals and supports the industry’s shift towards more sustainable manufacturing practices.
- Industry-Wide Impact: The CHIPS Act funding is part of a larger effort to bolster U.S. semiconductor manufacturing. Other major companies, such as Intel, SK hynix, Samsung, Taiwan Semiconductor Manufacturing (TSMC), and Micron Technology, are also receiving funds under the act. This collective investment is expected to strengthen the U.S. semiconductor industry and reduce reliance on foreign suppliers.
In Summary, Texas Instruments’ recent agreement with the U.S. Department of Commerce represents a significant step forward in the company’s strategy to expand its semiconductor manufacturing capabilities in the United States. With up to $1.6 billion in funding from the CHIPS and Science Act and additional tax incentives, TI is poised to build three state-of-the-art wafer fabs in Texas and Utah. These facilities will not only increase TI’s manufacturing capacity but also create thousands of new jobs and contribute to the local economy.
Furthermore, TI’s commitment to using renewable electricity for these fabs highlights its dedication to sustainability. As part of a broader industry effort, this investment will help strengthen the U.S. semiconductor sector and ensure a reliable supply of critical chips for the future.
About Texas Instruments
- Industry Leader: Texas Instruments (TI) is a global leader in semiconductor design and manufacturing, specializing in analog and embedded processing products.
- Innovation & Reach: TI drives technological advancement with a strong global presence, serving customers in over 100 countries.
- Sustainability & Culture: Committed to sustainability and fostering an inclusive, innovative work environment.
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