Semiconductor major Texas Instruments Inc. Friday said it has signed a preliminary agreement with U.S. Department Of Commerce to receive up to $1.6 billion in direct funding through the CHIPS and Science Act for 300mm semiconductor manufacturing in Texas and Utah.
The company also expects to receive an estimated $6 billion to $8 billion from the U.S. Department of Treasurys Investment Tax Credit for qualified U.S. manufacturing investments.
According to the company, the proposed direct funding under the CHIPS Act would support its investment of more than $18 billion through 2029, which is part of its broader investment in manufacturing.
Haviv Ilan, president and CEO of Texas Instruments, said, The historic CHIPS Act is enabling more semiconductor manufacturing capacity in the U.S., making the semiconductor ecosystem stronger and more resilient. ... With plans to grow our internal manufacturing to more than 95 percent by 2030, were building geopolitically dependable, 300mm capacity at scale to provide the analog and embedded processing chips our customers will need for years to come.
The largest U.S. analog and embedded processing semiconductor manufacturer said the proposed CHIPS funding, together with the investment tax credit, would help it to provide 300mm capacity for analog and embedded processing semiconductors.
The funding would support three 300mm semiconductor wafer fabs already under construction in Texas and Utah.
These connected, multi-fab sites, two in Sherman, Texas, and one in Lehi, Utah, will produce semiconductors in 28nm to 130nm technology nodes, which provide the optimal cost, performance, power, precision and voltage levels required for the companys analog and embedded processing products.
Further, Texas Instruments expects to create over 2,000 new jobs across its three new fabs in Texas and Utah and thousands of indirect jobs for construction, suppliers and supporting industries. The company also expects to receive $10 million in proposed funding for workforce development.
Further, U.S. Secretary of Commerce Gina Raimondo said, The CHIPS for America program will supercharge American technology and innovation and make our country more secure - and TI is expected to be an important part of the success of the Biden-Harris Administrations work to revitalize semiconductor manufacturing and development in the U.S.
In pre-market activity on the Nasdaq, Texas Instruments shares were gaining around 2 percent to trade at $205.51.