Texas Instruments secures $1.6bn in US government chip funding

Chipmaker Texas Instruments (TI) will receive $1.6 billion from the US government through the CHIPS and Science Act.

The investment will support three new semiconductor facilities — two in Sherman, Texas, and one in Lehi, Utah.

The firm has pledged more than $18bn through 2029 to the projects, which it says will create 2,000 manufacturing jobs.

TI is also expected to receive an estimated $6bn-$8bn in investment tax credits from the US Treasury Department and an additional $10m in funding 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 analogue and embedded processing chips our customers will need for years to come,” CEO Haviv Ilan said.

Semiconductor chips are needed in almost any electronic device, including cars, for safety and intelligence systems, medical equipment, and smart home accessories.

The US has been bolstering its semiconductor manufacturing in order to suppress dominance from countries such as China and Taiwan.

“With this proposed investment from the Biden-Harris Administration in TI…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,” said US Secretary of Commerce, Gina Raimondo

US Senator John Cornyn said: “The chipmaking capabilities these resources will enable at Texas Instruments will help the US reclaim its leadership role in the critically important semiconductor industry.”

Texas Instruments added that the new facilities will be entirely powered by renewable electricity and that it will continually “invest in its fabrication processes and equipment to reduce energy, material and water consumption, and greenhouse gas emissions.”