Texas Instruments gets $1.6bn in CHIPS Act Funding to drive U.S. semiconductor expansion

Texas Instruments (TI) is set to strengthen the U.S. semiconductor industry with up to $1.6 billion in direct funding from the CHIPS and Science Act. Announced on December 20, 2024, this federal investment will enable the construction of three 300mm wafer fabs in Sherman, Texas, and Lehi, Utah. These facilities are key to ensuring a stable, domestically sourced supply of analog and embedded processing semiconductors, which are critical for modern electronics across diverse industries.

The award reflects a collaborative effort between Texas Instruments and the U.S. Department of Commerce to bolster domestic semiconductor production. The funding also complements an estimated $6 billion to $8 billion in investment tax credits from the U.S. Department of Treasury, enhancing the financial framework for TI’s manufacturing expansion.

What Does CHIPS Act Funding Mean for U.S. Manufacturing?

The CHIPS and Science Act funding marks a turning point in efforts to revitalize U.S. semiconductor manufacturing. The direct funding will support cleanroom construction, advanced equipment installations, and structural development across TI’s Sherman and Lehi sites. The targeted investment is designed to increase domestic semiconductor capacity while reducing dependence on foreign supply chains.

Texas Instruments’ CEO, Haviv Ilan, highlighted the importance of these developments, noting the company’s leadership in analog and embedded processing technologies. According to Ilan, TI’s foundational chips underpin a wide range of devices, from automotive systems to personal electronics, making the manufacturing expansion critical to supporting national and global technology ecosystems.

Job Creation and Workforce Development

The initiative is expected to create 2,000 high-skilled jobs directly within Texas Instruments and thousands of additional roles in construction, supply chains, and supporting industries. To build a future-ready workforce, TI will receive an additional $10 million under the CHIPS Act for workforce development programs in Texas and Utah.

By investing in employee training and fostering community partnerships, TI is addressing the semiconductor industry’s long-term need for skilled professionals. These efforts not only benefit the company but also provide economic uplift for the regions surrounding Sherman and Lehi.

Sustainability at the Core of Manufacturing

Texas Instruments is integrating sustainability into its manufacturing strategy, reflecting its long-standing commitment to environmental responsibility. The new wafer fabs will operate entirely on renewable energy, significantly reducing their carbon footprint. In addition, the facilities will feature advanced water reuse systems, aiming to recycle up to 70% of the water used in operations.

These fabs are also being constructed to meet LEED Gold standards, ensuring high levels of energy efficiency and resource optimisation. Such initiatives position TI as a leader in combining cutting-edge technology with sustainable practices.

Reshaping the Semiconductor Supply Chain

The connected fab sites in Texas and Utah will leverage shared infrastructure, talent pools, and supplier networks to enhance operational efficiency. This integrated approach supports the production of semiconductors in technology nodes ranging from 28nm to 130nm, catering to diverse market demands.

These technology nodes are pivotal for creating high-performance, cost-efficient chips used in automotive systems, industrial applications, and enterprise technologies. TI’s expanded manufacturing capacity also addresses the growing need for a resilient semiconductor supply chain in light of global challenges.

The Bigger Picture: A Secure Semiconductor Future

Texas Instruments’ investment of over $18 billion through 2029 underscores the critical role of public-private partnerships in revitalising U.S. manufacturing. This comprehensive approach, supported by federal funding and tax incentives, not only strengthens domestic production but also fortifies the semiconductor supply chain against geopolitical uncertainties.

By scaling its production capabilities and focusing on sustainability, Texas Instruments is setting a benchmark for innovation in semiconductor manufacturing. As demand for advanced chips continues to rise, TI’s efforts will play a crucial role in meeting the technological needs of industries worldwide.