Texas Instruments (TI) and the US Department of Commerce have entered into a non-binding Preliminary Memorandum of Terms that outlines up to $1.6 billion in potential direct funding under the CHIPS and Science Act.
This funding is intended to support the construction of three 300mm wafer fabs currently underway in Texas and Utah. Additionally, TI anticipates receiving between $6 billion and $8 billion from the US Department of Treasury’s Investment Tax Credit for qualified manufacturing investments in the US These financial supports are aimed at bolstering TI’s ability to deliver a reliable supply of essential analog and embedded processing semiconductors with geopolitical stability.
Haviv Ilan, President and CEO of Texas Instruments, commented: “The historic CHIPS Act is enabling more semiconductor manufacturing capacity in the US, making the semiconductor ecosystem stronger and more resilient. Our investments further strengthen our competitive advantage in manufacturing and technology as we expand our 300mm manufacturing operations in the US 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.”
As the largest US manufacturer of analog and embedded processing semiconductors, TI has a long history of technological innovation, dating back over 90 years. The company has been at the forefront of advancements from vacuum tubes to transistors and now to integrated circuits. TI’s chips are integral to a wide range of electronic devices, including advanced automotive systems, life-saving medical equipment, and smart home technologies.
The proposed funding under the CHIPS Act would contribute to TI’s planned investment of over $18 billion by 2029, which is part of its larger strategy to enhance manufacturing capabilities. Specifically, the funding would support the construction of three new wafer fabs: two in Sherman, Texas (SM1 and SM2), and one in Lehi, Utah (LFAB2). These facilities are expected to:
- Construct and build the SM1 cleanroom and complete pilot line for first production
- Construct and build the LFAB2 cleanroom for first production
- Construct the SM2 shell
These connected, multi-fab sites are designed to benefit from shared infrastructure, talent, and technology, as well as strong relationships with suppliers and community partners. The fabs will produce semiconductors using 28 to 130nm technology nodes, optimised for cost, performance, power, precision, and voltage requirements essential for TI’s broad portfolio of products.
US Secretary of Commerce Gina Raimondo remarked: “With this proposed investment from the Biden-Harris Administration in TI, a global leader of production for current-generation and mature-node chips, we would help secure the supply chain for these foundational semiconductors that are used in every sector of the US economy, and create tens of thousands of jobs in Texas and Utah. The CHIPS for America programme 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 Administration’s work to revitalise semiconductor manufacturing and development in the US.”
In addition to expanding its manufacturing capacity, TI is committed to building a skilled workforce for the future. The company plans to create more than 2,000 jobs across its new fabs in Texas and Utah, along with thousands of indirect jobs in construction, supply chains, and supporting industries.
Texas Governor Greg Abbott expressed his support: “We are proud to work with Texas Instruments as they build new semiconductor fabs in Sherman and solidify Texas as the best state for semiconductors. Texas Instruments invented the microchip in Texas, and we are honoured to be home to TI’s semiconductor manufacturing facilities in Dallas, Richardson, and Sherman. With this latest project, TI is building on its more than 90-year legacy in Texas and adding thousands of good-paying jobs for Texans to manufacture critically important technology.”
US Senator John Cornyn added: “By investing in semiconductor manufacturing, we are helping secure this vulnerable supply chain, boosting our national security and global competitiveness, and creating new jobs for Texans. The chipmaking capabilities these resources will enable at Texas Instruments will help the US reclaim its leadership role in the critically important semiconductor industry, and I look forward to seeing more Texas-led advancements in the years to come.”
TI is also focused on developing future talent by enhancing employee skills, expanding internships, and creating pipeline programmes that emphasise electronic and mechanical expertise. The company partners with 40 community colleges, high schools, and military institutions across the US to cultivate the next generation of semiconductor professionals.
Utah Governor Spencer Cox praised TI’s expansion: “Utah is thrilled that Texas Instruments is expanding its manufacturing presence in the Silicon Slopes, furthering the impact Utahns have on critical semiconductor technology. This investment in semiconductor manufacturing not only creates more jobs, but also brings supply chains back to the United States.”
US Senator Mitt Romney echoed this sentiment: “This proposed CHIPS funding will further support Texas Instruments’ investment in its new semiconductor fab in Lehi – and enhance Utah’s vital role in our national defence and economic success. I was an original sponsor of the CHIPS and Science Act – which made today’s announcement possible – because in order to compete on the world stage, we must continue to promote innovation, foster scientific talent, and expand research here at home. Texas Instruments’ expanded operations will help make the United States more self-reliant for chips essential to our national security and economy.”
TI has a strong commitment to sustainable manufacturing practices. The company continually invests in its fabrication processes and equipment to minimise energy, material, and water consumption, as well as greenhouse gas (GHG) emissions. TI’s 300mm wafer fabs will be fully powered by renewable electricity, and all new 300mm fabs are designed to meet LEED Gold standards for efficiency and sustainability. These facilities are expected to reduce waste and improve water and energy consumption per chip, supporting TI’s broader goal of environmental stewardship.
TI’s semiconductors play a crucial role in reducing environmental impact by enabling the development of smaller, more efficient, and cost-effective technology solutions, which in turn drive continued innovation in electrification and the expanded use of renewable energy.
