Texas Instruments (TI) has entered into a preliminary agreement with the U.S. Department of Commerce to get up to $1.6 billion in funding under the CHIPS and Science Act. This, along with an anticipated up to $8 billion in investment tax credits, will support the expansion of fabs in Texas and Utah and enable them to produce chips on specialty 28nm – 130nm nodes. The expansions will create thousands of jobs and strengthen the U.S. chip supply chain.
The funding will specifically support the construction of three 300mm fabs. Two phases of TI's SM fab in Sherman, Texas, (a fab that will eventually include four phases) and one in Lehi, Utah. Under the terms of the deal, TI will use money from the U.S. government to equip the cleanroom of SM1 (SM fab, phase 1), construct shell for SM2, and re-equip the Lehi, Utah, fab which TI acquired from Micron with new tools. The Texas fabs will produce analog and embedded chips using specialty 28nm – 130nm process technologies, which are essential components in a wide range of electronic devices, from cars to medical equipment.
"The historic CHIPS Act is enabling more semiconductor manufacturing capacity in the U.S., making the semiconductor ecosystem stronger and more resilient," said Haviv Ilan, president and CEO of Texas Instruments. "Our investments further strengthen our competitive advantage in manufacturing and technology as we expand our 300mm manufacturing operations in the U.S. 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 new fabs will be powered entirely by renewable energy and are designed to meet LEED Gold standards, which emphasize structural efficiency and environmental responsibility.
In addition to the direct funding, TI expects to receive substantial investment via tax credits from the U.S. Treasury, further enhancing its ability to expand domestic manufacturing. This initiative aligns with TI's goal to internalize over 95% of its manufacturing by 2030, ensuring a steady supply of critical chips to customers in the U.S.
The projects in Texas and Utah are projected to create more than 2,000 new jobs directly at TI, with thousands of additional jobs generated in construction, supply chains, and supporting industries. Job creation is part of TI's broader commitment to workforce development, which includes partnerships with community colleges, high schools, and military institutions.
"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 U.S. economy, and create tens of thousands of jobs in Texas and Utah," said U.S. Secretary of Commerce Gina Raimondo.
