Texas Instruments will receive up to $1.6 billion in funding from the CHIPS/Science Act to build three semiconductor factories in Texas and Utah, the company announced Friday.
The funding will be used to build two new manufacturing plants in Sherman, Texas, and a third plant in Lehi, Utah.
“The historic CHIPS Act will expand semiconductor manufacturing capacity in the United States and make the semiconductor ecosystem stronger and more resilient,” Texas Instruments president and CEO Habib Iran said in a statement.
The company also said it expects to receive $6 billion to $8 billion in tax credits from the Treasury Department for qualified U.S. manufacturing investments, as well as $10 million in workforce development funding.
According to a Commerce Department press release, the three new factories are expected to create more than 2,000 manufacturing jobs in addition to thousands of construction jobs.
“Shortages of current-generation and mature-node chips during the pandemic have fueled inflation and made our country less secure,” Commerce Secretary Gina Raimondo said in a statement.
“This investment proposed by the Biden-Harris Administration in TI, a global leader in current generation and mature node chip manufacturing, will help secure the supply chain for these fundamental semiconductors used in every sector of the U.S. economy and create thousands of jobs in Texas and Utah,” she added.
The Biden administration has so far allocated more than $31 billion in CHIPS funds to companies including Intel, Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung to expand semiconductor manufacturing in the United States.
The CHIPS and Science Act, passed in August 2022, provides about $53 billion to boost domestic chip production, with $39 billion set aside for manufacturing incentives.
