Texas Instruments (TI) reached a preliminary agreement with the U.S. Department of Commerce to potentially receive up to $1.6 billion in funding under the CHIPS and Science Act. This financial support will aid in the construction of three new 300mm semiconductor wafer fabs located in Sherman, Texas, and Lehi, Utah. The investment is expected to enhance TI's manufacturing capabilities, providing a reliable supply of analog and embedded processing semiconductors crucial for various technologies.
In addition to the CHIPS Act funding, TI anticipates receiving between $6 billion and $8 billion from the U.S. Department of Treasury's Investment Tax Credit for its domestic manufacturing investments. The proposed funding will also include $10 million dedicated to workforce development, which will create over 2,000 new jobs at TI and thousands more indirectly across related industries. The new fabs are part of TI’s broader $18 billion investment in manufacturing through 2029, aimed at expanding its semiconductor production and strengthening its market position.
Haviv Ilan, President and CEO of Texas Instruments, emphasized the significance of this investment, stating, "The historic CHIPS Act is enabling more semiconductor manufacturing capacity in the U.S., making the semiconductor ecosystem stronger and more resilient. Our investments further strengthen our competitive advantage in manufacturing and technology as we expand our 300mm manufacturing operations in the U.S."
The proposed direct funding under the CHIPS Act would support TI's investment of more than $18 billion through 2029, which is part of the company's broader investment in manufacturing. This proposed direct funding will support three new wafer fabs, two in Sherman, Texas, (SM1 and SM2) and one in Lehi, Utah (LFAB2), specifically to:
- Construct and build the SM1 cleanroom and complete pilot line for first production;
- Construct and build the LFAB2 cleanroom for first production; and
- Construct the SM2 shell.
These connected, multi-fab sites benefit from shared infrastructure, talent and technology sharing, and a strong network of suppliers and community partners. They will produce semiconductors in 28nm to 130nm technology nodes, which provide the optimal cost, performance, power, precision and voltage levels required for TI's broad portfolio of analog and embedded processing products.
The project will create over 2,000 direct jobs at TI and thousands of additional jobs in construction and related sectors.
Since its enactment in August 2022, the CHIPS and Science Act has significantly bolstered U.S. semiconductor manufacturing with substantial federal funding. Intel has received approximately $20 billion for its expansion projects, including new fabs in Ohio. Micron Technology has been awarded around $15 billion to support its memory chip production expansion in Idaho. GlobalFoundries was granted $10 billion to enhance its semiconductor manufacturing capabilities at its facilities in New York.
