Texas Instruments (TI) is set to receive up to $1.6bn in proposed direct funding from the US Department of Commerce, under the CHIPS and Science Act.
A non-binding preliminary memorandum of terms has already been formalised between TI and the Department of Commerce to allocate the funding.
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This funding is expected to bolster three 300mm wafer fabrication facilities (fabs) currently under construction in Texas and Utah.
Additionally, TI anticipates securing around $6bn to $8bn as qualified manufacturing investments from the Investment Tax Credit of the US Department of Treasury.
The combined support from the CHIPS Act and the tax credit will help TI in raising a stable, geopolitically independent supply of critical analogue as well as embedded processing semiconductors.
TI, founded over nine decades ago, plays a role in powering electronic devices across various industries, from automotive to medical and domestic appliances.
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By GlobalDataThe proposed CHIPS Act funding will contribute to TI’s more than $18bn investment through 2029 to enhance its manufacturing capabilities.
It will specifically support the construction of cleanrooms and pilot lines for the two wafer fabs in Sherman, Texas (namely SM1 and SM2), and one located in Lehi, Utah, called LFAB2.
These sites will share infrastructure and resources, producing semiconductors ranging from 28nm to 130nm technology nodes, aligning with TI’s product portfolio requirements.
In addition, TI’s expansion will increase semiconductor production and create nearly 2,000 jobs at the new fabs, with additional indirect employment opportunities.
In line with its sustainability goals, TI’s 300mm wafer fabs will operate on renewable electricity and are designed to meet LEED Gold standards.
TI’s manufacturing processes aim to minimise environmental impact by reducing waste and improving energy and water efficiency, thereby contributing to the broader goal of fostering innovation in electrification and renewable energy usage.
TI president and CEO Haviv Ilan said: “Our investments further strengthen our competitive advantage in manufacturing and technology as we expand our 300mm manufacturing operations in the US.
“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 analogue and embedded processing chips our customers will need for years to come.”
