The U.S. government has awarded Texas Instruments (TI) up to $1.6 billion in funding under the CHIPS and Science Act to bolster semiconductor manufacturing. This investment is part of a larger initiative to strengthen the domestic semiconductor supply chain, which is vital for economic and national security.
TI plans to use this funding to support the construction of three new semiconductor wafer fabrication plants, known as fabs, in Sherman, Texas, and Lehi, Utah. These fabs will focus on producing current-generation and mature-node chips, essential for a wide range of electronic systems, from automotive to defense applications. The company also expects to receive between $6 billion and $8 billion from the U.S. Department of Treasury's Investment Tax Credit, aimed at supporting U.S. manufacturing investments.
Overall, TI's investment in these new facilities is projected to exceed $18 billion by 2029. This effort will create over 2,000 direct jobs and thousands of indirect jobs in construction, supply chains, and other supporting industries, contributing to the growth of the U.S. semiconductor industry.
The funding and tax incentives align with the Biden-Harris Administration's broader strategy to enhance U.S. competitiveness in technology and reduce dependence on foreign semiconductor production, especially in light of supply chain disruptions experienced during the COVID-19 pandemic
