Texas Instruments announced on Friday that it will receive up to $1.6 billion in funding from the U.S. Commerce Department to help build three new facilities. This funding, part of the US CHIPS and Science Act, is the latest effort by the government to boost domestic chip production.
The funds will support the construction of two factories in Texas and one in Utah. Texas Instruments has committed over $18 billion to these projects through 2029, which are expected to create 2,000 manufacturing jobs.
Additionally, the chipmaker expects to secure $6 billion to $8 billion in investment tax credits from the U.S. Treasury Department and $10 million for workforce development.
“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,” CEO Haviv Ilan said.
Through the CHIPS Act, the United States aims to increase domestic chip production and lessen dependence on Taiwan, a key player in the semiconductor industry. Passed in 2022, the CHIPS Act offers $52.7 billion in chip production and research subsidies.
Earlier this year, the government awarded nearly $20 billion in grants and loans to Intel and $6.1 billion in grants to memory chipmaker Micron Technology.
“This $1.6B will go a long way in helping Texas Instruments stay competitive,” said Kinngai Chan, senior analyst at Summit Insights Group.
“While TI doesn’t play in the cutting-edge process node, mature-node (a less advanced technology) is still very important for the U.S. semiconductor industry,” Chan said, noting China was also spending on mature nodes, which represent about half the global chip demand.
Texas Instruments is seeing a rise in demand for its chips, which are used in various products, including smartphones and cars. Last month, the company exceeded quarterly earnings expectations.
