In addition, TI expects to receive an estimated $6-8 billion from the US Department of Treasury's Investment Tax Credit for qualified US manufacturing investments.
The proposed direct funding, coupled with the investment tax credit, is intended to help TI provide a geopolitically dependable supply of essential analogue and embedded processing semiconductors.
"The historic CHIPS Act is enabling more semiconductor manufacturing capacity in the US, 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 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 analogue and embedded processing chips our customers will need for years to come."
TI is the largest US analogue and embedded processing semiconductor manufacturer, and the funding proposed under the CHIPS Act would support TI's investment of more than $18 billion 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, (SM1 and SM2) and one in Lehi, Utah (LFAB2), 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.
TI said that it 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.
In addition, the company's 300mm wafer fabs will be entirely powered by renewable electricity. All of TI's new 300mm fabs are designed to meet LEED Gold standards for structural efficiency and sustainability and the company’s 300mm manufacturing facilities will look to reduce waste and improve water and energy consumption per chip.
