Business Emerge, August 17: Texas Instruments has announced that it will receive up to $1.6 billion in funding from the U.S. Commerce Department, a significant step towards expanding its domestic chip production capabilities. This financial support will be directed towards the construction of three new manufacturing plants—two in Texas and one in Utah—under the U.S. CHIPS and Science Act.
In addition to the government funding, Texas Instruments anticipates securing between $6 billion and $8 billion in investment tax credits from the U.S. Treasury Department. Furthermore, the company will benefit from $10 million allocated specifically for workforce development initiatives. These efforts are part of Texas Instruments’ broader commitment to investing over $18 billion in these projects by 2029, which are set to generate 2,000 new manufacturing jobs.
The CHIPS Act, passed in 2022, represents a strategic move by the U.S. to enhance domestic semiconductor production and reduce dependency on overseas manufacturing, particularly from Taiwan. The Act has the potential to disburse up to $52.7 billion in subsidies aimed at fostering chip production and advancing research. Earlier this year, significant grants were also awarded to other major players in the semiconductor industry, including Intel and Micron Technology, to strengthen the U.S. position in the global chip market.
Texas Instruments CEO Haviv Ilan emphasized the importance of this expansion, stating, “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.”
According to Kinngai Chan, a senior analyst at Summit Insights Group, the $1.6 billion investment will significantly enhance Texas Instruments’ competitiveness in the evolving semiconductor landscape.