Texas Instruments is the latest company to receive CHIPS and Science Act subsidies with $1.6 billion in direct funding to fuel the construction of three 300 mm fabs in the U.S.
Under the agreement with the U.S. Department of Commerce, the funding will help with the three fabs currently under construction in Texas and Utah. These fabs will create more than 2,000 new jobs and thousands of construction, suppliers and adjacent industry jobs.
“Today’s announced incentives will help Texas Instruments boost domestic production of analog and embedded processing semiconductors while strengthening America’s economy, national security and supply chain resilience,” said John Neuffer, president and CEO of the Semiconductor Industry Association (SIA). “The CHIPS incentives will help bolster U.S.-based fabrication of current-generation and mature-node semiconductors, supplementing TI’s ambitious total investment of more than $18 billion through 2029.”
SIA said that the TI deal, along with the other 15 companies that received direct funding from the CHIPS Act, will help reinforce domestic U.S. semiconductor production, innovation and R&D efforts. It will also help the U.S. with its goal to produce one-third of all chip manufacturing.
Currently, semiconductor manufacturing is aggregated in Asia, specifically Taiwan, Korea and China. This aggregation showed vulnerabilities during COVID-19 when lockdowns caused chip shortages across the semiconductor supply chain, resulting in numerous problems in consumer electronics, automotive and other sectors.
“During the pandemic, shortages of current-generation and mature-node chips fueled inflation and made our country less safe,” said Gina Raimondo, U.S. Secretary of Commerce. “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.”
Along with the $1.6 billion from the CHIPS Act, TI expects to receive about $6 billion and $8 billion from the U.S. Department of Treasury’s Investment Tax Credit for domestic manufacturing investments.
Broad support
TI said that the CHIPS funding will support more than $18 billion through 2029 in infrastructure investment for analog and embedding processing semiconductor fabs.
The three fabs it will support include two in Sherman, Texas (called SM1 and SM2), and one in Lehi, Utah, (called LFAB2). Specifically, the funding will be used to:
- Construct and build the SM1 cleanroom and complete pilot line for first production
- Construct and build the LFAB2 cleanroom for first production
- Construct the SM2 shell
TI said these fabs will produce chips in 28 nm to 130 nm technology nodes and, because they are connected, multi-fab sites will benefit from shared infrastructure, talent and technology sharing as well as a network of third-party suppliers and community partners.
“By investing in semiconductor manufacturing, we are helping secure this vulnerable supply chain, boosting our national security and global competitiveness, and creating new jobs for Texans,” said U.S. Senator John Cornyn (R-TX). “The chipmaking capabilities these resources will enable at Texas Instruments will help the U.S. reclaim its leadership role in the critically important semiconductor industry, and I look forward to seeing more Texas-led advancements in the years to come.”
