The U.S. Department of Commerce has approved up to $1.6 billion in direct funding for Texas Instruments (TI). This substantial funding is part of the CHIPS and Science Act, aimed at boosting domestic semiconductor manufacturing capabilities.
Texas Instruments Incorporated (TI) is a global semiconductor design and manufacturing company that develops analog and embedded processing chips. Headquartered in Dallas, Texas, TI is one of the largest semiconductor companies in the world.
This financial support will contribute to TI’s plans to construct three new 300mm semiconductor wafer fabrication facilities (fabs) in Texas and Utah. These fabs are expected to play a crucial role in meeting the growing demand for semiconductors across various industries.
Beyond the direct funding, TI is also projected to benefit from investment tax credits and additional funding for workforce development. This move not only strengthens TI’s position but also reinforces the U.S. government’s commitment to revitalizing the domestic semiconductor industry and reducing reliance on foreign supply chains.
Key Points:
Funding: Texas Instruments (TI) has been approved to receive up to $1.6 billion in direct funding from the U.S. Department of Commerce.
Purpose: The funding, provided under the CHIPS and Science Act, aims to support the construction of three new 300mm semiconductor wafer fabrication facilities (fabs).
Locations: Two of the fabs will be situated in Texas, with the remaining one in Utah.
Investment & Job Creation: TI has pledged a substantial investment of over $30 billion towards these projects by 2030. The initiative is expected to create around 3,000 direct jobs and thousands more indirect jobs in construction, supply chains, and supporting industries.
Additional Benefits: Besides direct funding, TI anticipates receiving an estimated $6 billion to $8 billion in investment tax credits from the U.S. Treasury Department. It will also get $10 million in proposed funding for workforce development.
Strategic Importance: This funding reinforces the U.S. government’s commitment to bolstering domestic semiconductor manufacturing capabilities and reducing reliance on foreign supply chains. It also highlights TI’s crucial role in this endeavor.
Overall Impact:
This substantial funding boost for Texas Instruments marks a significant step towards strengthening the U.S. semiconductor industry. It’s a win-win situation, fostering job creation, technological advancement, and supply chain resilience. Moreover, it underscores the growing importance of semiconductors in various sectors, from consumer electronics to automotive and beyond.