To support three 300mm wafer fabs that are now under construction in Texas and Utah, Texas Instruments (TI) and the U.S. Department of Commerce have signed a non-binding Preliminary Memorandum of Terms for up to $1.6 billion in potential direct funding under the CHIPS and Science Act.
Furthermore, TI anticipates receiving between $6 billion and $8 billion under the Investment Tax Credit from the U.S. Department of Treasury for eligible investments made in U.S. manufacturing. Together with the investment tax credit, the proposed direct funding will enable TI to deliver vital analog and embedded processing semiconductors in a geopolitically stable manner stated its official release.
“The historic CHIPS Act is enabling more semiconductor manufacturing capacity in the U.S., 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 U.S. 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.”
As part of TI’s larger commitment in manufacturing, the company has invested over $18 billion through 2029. The proposed direct funding under the CHIPS Act will support this investment.
Three new wafer fabs, one in Lehi, Utah (LFAB2) and two in Sherman, Texas (SM1 and SM2), will be specially supported by this proposed direct financing 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 interconnected, multi-fab sites gain from a robust network of suppliers and community partners, as well as shared infrastructure, talent, and technology. The 28 nm to 130 nm technology nodes, which offer the best possible balance of price, performance, power, accuracy, and voltage levels, will be used to generate the semiconductors needed for TI’s wide range of analog and embedded processing solutions.
“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 tens of thousands of jobs in Texas and Utah,” said U.S. Secretary of Commerce Gina Raimondo. “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.”
Building Future Workforce
Moreover, TI is making investments to develop its future workforce. Across its three new fabrication facilities in Texas and Utah, TI plans to create over 2,000 business positions in addition to thousands of indirect jobs for the building, supplier, and related industries.
In order to build a future-ready workforce, TI is enhancing the skills of current employees, expanding internships and creating pipeline programs with a focus on building electronic and mechanical skills. TI has robust engagements with 40 community colleges, high schools and military institutions across the U.S. to develop future semiconductor talent.
“We are proud to work with Texas Instruments as they build new semiconductor fabs in Sherman and solidify Texas as the best state for semiconductors. Texas Instruments invented the microchip in Texas, and we are honored to be home to TI’s semiconductor manufacturing facilities in Dallas, Richardson and Sherman,” said Texas Gov. Greg Abbott. “With this latest project, TI is building on its more than 90-year legacy in Texas and adding thousands of good-paying jobs for Texans to manufacture critically important technology.”
“By investing in semiconductor manufacturing, we are helping secure this vulnerable supply chain, boosting our national security and global competitiveness, and creating new jobs for Texans,” said U.S. Sen. John Cornyn. “The chipmaking capabilities these resources will enable at Texas Instruments will help the U.S. reclaim its leadership role in the critically important semiconductor industry, and I look forward to seeing more Texas-led advancements in the years to come.”
“Utah is thrilled that Texas Instruments is expanding its manufacturing presence in the Silicon Slopes, furthering the impact Utahns have on critical semiconductor technology,” said Utah Gov. Spencer Cox. “This investment in semiconductor manufacturing not only creates more jobs, but also brings supply chains back to the United States.”
“This proposed CHIPS funding will further support Texas Instruments’ investment in its new semiconductor fab in Lehi —and enhance Utah’s vital role in our national defense and economic success,” said U.S. Senator Mitt Romney. “I was an original sponsor of the CHIPS and Science Act—which made today’s announcement possible—because in order to compete on the world stage, we must continue to promote innovation, foster scientific talent, and expand research here at home. Texas Instruments’ expanded operations will help make the United States more self-reliant for chips essential to our national security and economy.”
Net-Zero front Manufacturing
The 300mm wafer fabs of the company will run exclusively on renewable energy. In addition, the structural efficiency and sustainability requirements of LEED Gold are met by all of TI’s new 300mm fabs. TI’s 300mm manufacturing facilities improve water and energy consumption per chip and reduce waste.
Texas Instruments semiconductors’ are and will continue to play a vital role in assisting customers in developing smaller, more affordable, and efficient technological solutions that will ultimately spur further advancements in electrification and the increased use of renewable energy sources.
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