Texas Instruments has announced on Friday that it will receive up to $1.6 billion in funding from the U.S. Commerce Department to support the construction of three new semiconductor facilities. This funding, part of the U.S. CHIPS and Science Act, is the latest effort by the government to enhance domestic chip production.
The funds will aid in the development of two factories in Texas and one in Utah. Texas Instruments has committed over $18 billion through 2029 to these projects, which are anticipated to create 2,000 manufacturing jobs. In addition to the Commerce Department’s funding, the chipmaker expects to secure between $6 billion and $8 billion in investment tax credits from the U.S. Treasury Department, along with $10 million for workforce development.
CEO Haviv Ilan stated, “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 analog and embedded processing chips our customers will need for years to come.”
The U.S. is working to boost domestic semiconductor production and lessen its dependence on Taiwan through the CHIPS Act, which was passed in 2022 and provides $52.7 billion in subsidies for chip production and research. Earlier this year, the Act awarded nearly $20 billion in grants and loans to Intel and $6.1 billion in grants to Micron Technology.
“This $1.6 billion will go a long way in helping Texas Instruments stay competitive,” said Kinngai Chan, senior analyst at Summit Insights Group. Chan noted that while Texas Instruments doesn’t operate in the cutting-edge process node, the mature-node technology it produces remains vital to the U.S. semiconductor industry, especially as China continues to invest in this area, which accounts for about half of the global chip demand.
Texas Instruments is currently benefiting from a resurgence in demand for its chips, which are used in a wide range of products, from smartphones to cars. The company recently exceeded quarterly earnings estimates.