Texas Instruments on Friday announced up to $1.6 billion in federal CHIP Act funding. This is a sign of support for the rapidly growing semiconductor manufacturing industry that is becoming more established in North Texas.
Texas Instruments also expects to receive $6 billion to $8 billion in U.S. Treasury tax credits for manufacturing investments and up to $10 million in workforce development incentives, the company said. .
Overall, the funding will help Texas Instruments fund three new factories, two based in Sherman and one in Lehi, Utah, and create 2,000 new jobs. Create. Separately, Samsung will receive up to $4.75 billion in CHIPS Act funding, but Bloomberg notes that this number is lower than originally expected.
Habib Ilan, president and CEO of Texas Instruments, said: “The increasing number of electronic devices in our lives relies on underlying chips. We appreciate the U.S. government’s support to make the semiconductor ecosystem stronger and more resilient.”
The funding will support the company’s efforts to spend more than $18 billion on three facilities by the end of 2010, the U.S. Department of Commerce said in a statement. The government will distribute the funds “based on the completion of TI’s project milestones,” the statement said.
With semiconductors a national security priority, the isolated province is becoming a production center for the strategically important sector, making huge amounts of government funding available in the process.
Texas Instruments’ award is part of a state and federal windfall that has helped several North Texas companies and encouraged state government to develop policies that foster growth and job creation. It is part of the funds.
“The shortage of current-generation and mature node semiconductors is one of the drivers of supply chain disruption during the pandemic, fostering innovation and putting our national security at risk,” U.S. Secretary of Commerce Gina Raimondo said in a statement. said.
“With this major investment in TI to expand U.S. production capacity for these basic semiconductors, we will strengthen our economic security, make our country safer, and create thousands of jobs in Texas and Utah. “We are creating,” she added.
As President Joe Biden prepares to leave office, he is working overtime to lavish even more federal funding on the semiconductor industry with the CHIPS Act of 2022, which he signed into law. A combination of grants, loans, tax credits, and guarantees.
