Texas Instruments Set For $7B+ Benefits Under US CHIPS Act

In an effort to boost the semiconductor industry and take a lead in microchip manufacturing at a global level, the US government has been awarding grants and other benefits to numerous semiconductor manufacturers.

This includes almost $20 billion to Intel, $6.4 billion to Samsung and $6.6 billion to TSMC under the CHIPS and Science Act to enhance and grow its chip business.

At the same time, the European Union’s EU Chips Act awarded $2.7 billion to Imec to boost the next generation of advanced computer chips.

Now, the US government is set to award global semiconductor company Texas Instruments with funding to help it enhance its chip fabs and more.

So, what benefits will the company receive and how will it help enhance its capabilities? Let’s explore!
 

What Benefits Is Texas Instruments Set To Receive?

 

• Through a news release published on its website, Texas Instruments announced that it has signed a non-binding Preliminary Memorandum of Terms which will see the company receive benefits under the United States’ CHIPS and Science Act.

• The move was also announced by the US government’s US Department of Commerce through a press release.

• As per the agreement, Texas Instruments is set to receive $1.6 billion in proposed direct funding that will help it support three of its 300mm wafer fabs that are already under construction in Texas and Utah.

• Furthermore, the company expects to receive around $6 billion to $8 billion from the US Department of Treasury's Investment Tax Credit for qualified US manufacturing investments.

• These two benefits could help support the company’s planned investment of more than $18 billion through 2029 and enable it to provide a geopolitically dependable supply of semiconductors, boosting the country’s local economy.

• The move becomes more crucial as the global semiconductor company serves businesses across markets such as industrial, automotive, personal electronics, communications equipment and enterprise systems.

• As per the company, the direct funding will support three new wafer fabs, two in Sherman, Texas, (SM1 and SM2) and one in Lehi, Utah (LFAB2).

• These fabs will produce semiconductors in 28nm to 130nm technology nodes, which provide the optimal cost, performance, power, precision and voltage levels required for the company’s broad portfolio of analog and embedded processing products.

• Ahead of this, the move will help create over 2,000 jobs across its new fabs, in addition to the thousands of indirect jobs for construction, suppliers and supporting industries.

• Additionally, Texas Instruments is upskilling its current workforce while also expanding internships and creating pipeline programs.

• It will also help the company build on its commitment to reduce energy, material and water consumption, and greenhouse gas (GHG) emissions across its operations.

 

What Did Texas Instruments Executives Say?

 

• Haviv Ilan, President and CEO of Texas Instruments, said, “The historic CHIPS Act is enabling more semiconductor manufacturing capacity in the U.S., making the semiconductor ecosystem stronger and more resilient.”

• “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 analog and embedded processing chips our customers will need for years to come.”

 

What Did US Government Officials Say?

 

• US Secretary of Commerce Gina Raimondo, said, “During the pandemic, shortages of current-generation and mature-node chips fueled inflation and made our country less safe.

• “With this proposed investment from the Biden-Harris Administration in TI, a global leader of production for current-generation and mature-node chips, we would help secure the supply chain for these foundational semiconductors that are used in every sector of the U.S. economy, and create thousands of jobs in Texas and Utah.”

• “The CHIPS for America program will supercharge American technology and innovation and make our country more secure – and TI is expected to be an important part of the success of the Biden-Harris Administration’s work to revitalize semiconductor manufacturing and development in the U.S.”

Do you think this move will help the company capture a bigger customer base and boost its market share in the semiconductor industry? Do you think other countries should take similar initiatives to boost their microchip production capacity?

Let us know in the comments below!