Texas Instruments announced that it will receive $1.6 billion in CHIPS funding from the US Department of Commerce to build three new factories.
Government funding will help TI build two factories in Texas and one in Utah. Texas Instruments has committed to spending more than $18 billion through 2029 on these projects, which are expected to create 2,000 manufacturing jobs.
The Texas-based chipmaker expects to receive about $6 billion to $8 billion in investment tax credits from the U.S. Treasury Department and $10 million in workforce development funding, Reuters reported.
Havio Ilan“With plans to increase domestic production by more than 95 percent by 2030, we are building advanced 300mm wafers with geopolitical reliability to power the analog chips and embedded processors our customers will need in the coming years,” said TI CEO. to provide.”
By passing the CHIPS Act in 2022, the US is trying to increase domestic manufacturing capabilities and reduce dependence on Taiwanese chipmakers. Since the beginning of 2024, the US Department of Commerce has allocated nearly 20 billion dollars to Intel and 6.1 billion dollars to Micron in the form of grants and loans.
Kingi-chan“This money will go a long way toward helping Texas Instruments stay competitive,” said the technology analyst. “While the company does not operate in advanced lithography technology, the mature node (an older technology) is still very important to the US semiconductor industry.” China is also spending on mature nodes, which account for about half of global chip demand, he noted.
Texas Instruments is one of the oldest chip companies in the world and is considered the first commercial silicon transistor manufacturer in the world. The products of this company are used in the manufacture of electronic equipment such as calculators, analog and digital parts, military equipment, aerospace, automobile and medical equipment. The company missed quarterly profit forecasts last month.
