TI Set to Receive Up to $8 Billion in US CHIPS Act Funds

Texas Instruments has recently announced a significant milestone in its expansion plans, signing a preliminary agreement to receive up to $1.6 billion in grants under the US CHIPS and Science Act. This funding is earmarked for the company's fabs in Sherman, Texas, and Lehi, Utah, with the aim of boosting domestic semiconductor production.

The funding package for the 300mm fabs includes not only the $1.6 billion grant but also an additional $6 billion to $8 billion in investment tax credits. This substantial financial support is intended to drive internal production at Texas Instruments to 95% by 2030, with a total investment of $18 billion. The company is also taking steps to bring more of its test and assembly processes in-house in Malaysia, further solidifying its supply chain.

As part of its expansion strategy, Texas Instruments plans to construct up to four new 300mm fabs in Texas. The company is also set to receive $10 million in proposed funding for workforce development, which will create 2,000 new jobs at TI and generate thousands of indirect jobs in construction, supplier industries, and supporting sectors.

"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% 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," said Haviv Ilan, president and CEO of Texas Instruments.

The proposed direct funding will support the construction of three new wafer fabs, including two in Sherman, Texas (SM1 and SM2) and one in Lehi, Utah (LFAB2). These facilities will play a crucial role in enhancing TI's manufacturing capabilities and ensuring a stable supply chain for semiconductor products.