Texas Instruments to get $1.6B in CHIPS and Science Act for fabs in Texas, Utah

Texas Instruments and the U.S. Department of Commerce have signed a non-binding preliminary memorandum of terms for up to $1.6B in proposed direct funding under the CHIPS and Science Act to support three 300mm wafer fabs already under construction in Texas and Utah. In addition, TI expects to receive an estimated $6B to $8B from the U.S. Department of Treasury’s Investment Tax Credit for qualified U.S. manufacturing investments. The proposed direct funding, coupled with the investment tax credit, would help TI provide a geopolitically dependable supply of essential analog and embedded processing semiconductors. The proposed direct funding under the CHIPS Act would support TI’s investment of more than $18B through 2029, which is part of the company’s broader investment in manufacturing. This proposed direct funding will support three new wafer fabs, two in Sherman, Texas, and one in Lehi, Utah, specifically to: Construct and build the SM1 cleanroom and complete pilot line for first production; Construct and build the LFAB2 cleanroom for first production; and Construct the SM2 shell. These connected, multi-fab sites benefit from shared infrastructure, talent and technology sharing, and a strong network of suppliers and community partners. They will produce semiconductors in 28nm to 130nm technology nodes, which provide the optimal cost, performance, power, precision and voltage levels required for TI’s broad portfolio of analog and embedded processing products. TI will create more than 2,000 company jobs across its three new fabs in Texas and Utah, along with thousands of indirect jobs for construction, suppliers and supporting industries.