Texas Instruments to Receive $1.6 Billion in U.S. Funding for New Chip Facilities

Texas Instruments announced on Friday that it will receive up to $1.6 billion in funding from the U.S. Commerce Department to support the construction of three new chip manufacturing facilities.

This funding is part of a broader government initiative under the U.S. CHIPS and Science Act, designed to bolster domestic semiconductor production.

Details of the Funding and Construction Plans:

The funding will assist Texas Instruments in building two factories in Texas and one in Utah. The company has committed over $18 billion to these projects through 2029, which are expected to create around 2,000 manufacturing jobs.

Additionally, Texas Instruments anticipates receiving between $6 billion and $8 billion in investment tax credits from the U.S. Treasury Department and $10 million in workforce development funding.

CEO’s Vision for Expansion:

Texas Instruments CEO Haviv Ilan emphasized the company’s commitment to increasing its internal manufacturing capacity, stating, “With plans to grow our internal manufacturing to more than 95% 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.”

U.S. Efforts to Enhance Domestic Chip Production:

The U.S. CHIPS and Science Act passed in 2022, provides $52.7 billion in subsidies for chip production and research as part of a national strategy to reduce Taiwan’s reliance on semiconductor production. Earlier this year, the Act facilitated nearly $20 billion in grants and loans to Intel and $6.1 billion in grants to Micron Technology.

Kinngai Chan, a senior analyst at Summit Insights Group, commented on the significance of the funding for Texas Instruments, stating, “This $1.6B will go a long way in helping Texas Instruments stay competitive.”

Chan also highlighted the importance of mature-node technology, representing about half of global chip demand, noting that China is also investing heavily in this area.