Texas Instruments Gets $1.6 Billion for Semiconductors
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Texas Instruments on Dec. 20 announced a tranche of federal CHIPS and Science Act funding worth up to $1.6 billion, a show of support for a booming semiconductor manufacturing industry that’s becoming more entrenched in North Texas.
According to the company, Texas Instruments also expects to receive somewhere between $6 billion and $8 billion in U.S. Treasury tax credits for manufacturing investments, and up to $10 million to boost workforce development.
All told, the money will assist in funding three new Texas Instruments plants: two based in Sherman and one in Lehi, Utah, creating 2,000 new jobs. Separately, Samsung will receive as much as $4.75 billion in CHIPS Act money, a figure Bloomberg notes was below what was originally envisaged.
“The increasing number of electronic devices in our lives depend on our foundational chips, and we appreciate the support from the U.S. government to make the semiconductor ecosystem stronger and more resilient,” said Haviv Ilan, president and CEO of Texas Instruments.
We’re proud to announce an award of up to $1.6 billion in #CHIPSActfunding from @CommerceGov to support 3 new fabs under construction in Texas and Utah. Learn how we’re building geopolitically dependable capacity at scale to meet future chip demand: https://t.co/Y3aVdwiY9Y pic.twitter.com/loc8k469ZJ — Texas Instruments (@TXInstruments) December 20, 2024
In a statement, the U.S. Department of Commerce noted the money will buttress the company’s effort to spend over $18 billion on the three facilities through the end of the decade. The government will distribute the funds “based on TI’s completion of project milestones,” according to the statement.
With semiconductors a national security priority, the Lone Star State is becoming an epicenter of production in the strategically important sector — unlocking vast amounts of government funding in the process.
Texas Instruments’ latest award is part of a windfall of state and federal dollars that have bolstered several companies in North Texas and spurred the state government to create policies to incentivize growth and job creation.
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“Shortages of current-generation and mature-node semiconductors were one of the driving forces behind supply chain disruptions during the pandemic, fueling innovation and putting our national security at risk,” U.S. Secretary of Commerce Gina Raimondo said in a statement.
“With this major investment in TI to expand U.S. capacity of these foundational semiconductors, we are strengthening our economic security, making our country safer, and creating thousands of jobs in Texas and Utah,” she added.
As he prepares to leave office, President Joe Biden has been working overtime to lavish more federal funding on the semiconductor industry by way of the CHIPS Act (Creating Helpful Incentives to Produce Semiconductors) he signed in 2022, which set aside tens of billions in a mix of grants, loans, tax credits and guarantees.
