Texas Instruments Secures $1.6 Billion CHIPS Act Funding for New Semiconductor Plants

In a move that’s sure to shake up the semiconductor landscape, Texas Instruments (TI) has teamed up with the U.S. Department of Commerce to explore a significant funding opportunity under the CHIPS and Science Act. We’re talking about a potential $1.6 billion in direct funding aimed at bolstering three new 300 mm wafer fabrication plants already in the works in Texas and Utah. And if that wasn’t enough, TI is also eyeing an additional $6 billion to $8 billion from the U.S. Treasury’s Investment Tax Credit aimed at supporting domestic manufacturing. It’s a hefty investment, but one that could redefine the supply chain for essential semiconductors in a world that’s increasingly reliant on technology.

Haviv Ilan, the president and CEO of Texas Instruments, put it succinctly: “The historic CHIPS Act is enabling more semiconductor manufacturing capacity in the U.S., making the semiconductor ecosystem stronger and more resilient.” It’s a statement that resonates, especially considering the recent global chip shortages that have left everything from car manufacturers to smartphone makers scrambling.

So, what does this mean for you and me? Well, TI is gearing up to produce the analog and embedded processing chips that power a vast array of devices—from the cars that keep us safe on the road to the medical equipment that saves lives. With plans to ramp up internal manufacturing to over 95% by 2030, TI is positioning itself as a key player in creating a more reliable and geopolitically stable semiconductor supply chain.

Let’s break it down a bit. The proposed funding will support the construction of three new wafer fabs: two located in Sherman, Texas (SM1 and SM2) and one in Lehi, Utah (LFAB2). These fabs will not only feature cleanrooms for production but also share infrastructure and talent, creating a network that enhances efficiency. The chips produced here will utilize technology nodes ranging from 28 nm to 130 nm, which is a bit like saying they’ll be optimized for cost and performance—think of it as making sure your favorite app runs smoothly on your smartphone without draining the battery.

U.S. Secretary of Commerce Gina Raimondo highlighted the broader implications of this investment: “We would help secure the supply chain for these foundational semiconductors that are used in every sector of the U.S. economy.” It’s hard to overstate how crucial this is, especially in a time when supply chain vulnerabilities have been laid bare.

In addition to bolstering the semiconductor supply chain, TI’s expansion is set to create over 2,000 direct jobs and thousands more in related sectors. It’s a promising prospect for job seekers in Texas and Utah, especially in an era where tech jobs are often seen as the golden ticket. Texas Governor Greg Abbott proudly noted, “Texas Instruments invented the microchip in Texas, and we are honored to be home to TI’s semiconductor manufacturing facilities.”

But it’s not just about jobs; it’s also about building a future-ready workforce. TI is investing in training programs and partnerships with community colleges and high schools to ensure that the next generation of semiconductor engineers and technicians is ready to step into these roles. It’s a long-term vision that recognizes the importance of education in driving innovation.

And let’s not forget about sustainability. TI is committed to eco-friendly practices, with plans for its new fabs to be powered entirely by renewable electricity. They’re also aiming for LEED Gold certification, which is a standard for environmentally sustainable buildings. This means that while they’re ramping up production, they’re also working to minimize their environmental footprint—a win-win for both the company and the planet.

As we watch these developments unfold, it’s clear that Texas Instruments is not just looking to expand its manufacturing capabilities; it’s also setting the stage for a more secure and sustainable semiconductor future. In a world where technology is only going to become more integral to our lives, this is a story worth following. Will TI’s investment pay off? Only time will tell, but one thing’s for sure: the semiconductor race is heating up, and it’s a fascinating time to be in tech.