The Commerce Department announced today it has signed another blockbuster funding deal under the CHIPS and Science Act for up to $1.6 billion in proposed direct funding for Texas Instruments (TI) to expand its production of semiconductors.
President Biden signed the CHIPS and Science Act into law in August 2022, making up to $52 billion of funding available to incentivize semiconductor makers to establish new manufacturing operations in the United States.
The preliminary funding deal would support TI’s investment of more than $18 billion through the end of the decade to construct three new state-of-the-art semiconductor facilities. The planned project would help to strengthen domestic supply chain resilience and advance national security.
“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,” Secretary of Commerce Gina Raimondo said in a press release.
“The CHIPS for America program will supercharge American technology and innovation and make our country more secure – and TI is expected to be an important part of the success of the Biden-Harris administration’s work to revitalize semiconductor manufacturing and development in the U.S.,” she added.
According to the Commerce Department, TI is one of the only companies building high-volume 300-mm wafer capacity for foundational technologies in the United States. The company’s three new facilities would significantly increase its domestic production capacity of mature-node chips.
The proposed CHIPS funding would be split across three projects in two locations: two new, large-scale 300-mm fabrication facilities would be built in Sherman, Texas; and one large-scale 300-mm fabrication facility would be built in Lehi, Utah.
“The historic CHIPS Act is enabling more semiconductor manufacturing capacity in the U.S., making the semiconductor ecosystem stronger and more resilient,” said Haviv Ilan, president and CEO of Texas Instruments. “Our investments further strengthen our competitive advantage in manufacturing and technology as we expand our 300mm manufacturing operations in the U.S.”
“With plans to grow our internal manufacturing to more than 95 percent by 2030, we’re building geopolitically dependable, 300mm capacity at scale to provide the analog and embedded processing chips our customers will need for years to come,” Ilan said.
The $1.6 billion is one of the larger funding deals under the CHIPS and Science Act, joining the billion-dollar ranks alongside the $6.1 billion for Micron Technology, $6.4 billion for Samsung Electronics, and $6.6 billion for TSMC Arizona – a unit of Taiwan Semiconductor Manufacturing Company Limited.
