Texas Instruments announced that it will receive up to $1.6 billion in funding from the U.S. Commerce Department to support the construction of three new facilities, marking another significant government effort to enhance domestic chip production.
This funding, provided under the US CHIPS and Science Act, will assist in building two factories in Texas and one in Utah. Texas Instruments has committed over $18 billion to these projects through 2029, with expectations to create 2,000 manufacturing jobs.
Additionally, the chipmaker anticipates receiving between $6 billion and $8 billion in investment tax credits from the U.S. Treasury Department, along with $10 million allocated for workforce development.
With plans to expand internal manufacturing to over 95% by 2030, Texas Instruments aims to build a reliable, large-scale 300mm capacity to supply the analog and embedded processing chips needed by its customers for years to come.
The United States is striving to increase domestic chip production and lessen dependence on semiconductor hubs like Taiwan through the CHIPS Act, which was enacted in 2022 and offers $52.7 billion in subsidies for chip manufacturing and research.
This $1.6 billion in funding will significantly help Texas Instruments remain competitive in the semiconductor industry. Although Texas Instruments does not focus on the cutting-edge process node, mature-node technology remains crucial for the U.S. semiconductor industry. Mature nodes represent about half of the global chip demand, and other countries are also investing in this technology.
Texas Instruments is currently experiencing a rebound in demand for its chips, which are used in a wide range of products, including smartphones and cars. The company recently exceeded quarterly earnings expectations.
