Courtesy of Texas Instruments
A rendering of Texas Instruments’ semiconductor manufacturing facility in Lehi.
Dallas-based Texas Instruments is set to receive $1.6 billion from the federal government to fund new semiconductor manufacturing facilities in Texas and Utah.
Texas Instruments, a semiconductor multinational that makes chips for industrial, automotive, personal electronics and other applications, announced it would build a new $11 billion manufacturing plant in Lehi to manufacture 300-millimeter semiconductor wafers (the material used to conduct electricity in electronic devices) next to an existing similar facility, according to a company press release.
The U.S. Department of Commerce has approved funding for this new plant and two others in Sherman, Texas, through the CHIPS and Science Act. In addition to this direct funding, Texas Instruments is set to receive $6 billion to $8 billion from the U.S. Treasury Investment Tax, as well as $10 million in proposed funding for workforce development.
Texas Instruments President and CEO Habib Iran said the investment will make the country’s semiconductor ecosystem more resilient.
“With plans to expand in-house manufacturing to more than 95 percent by 2030, we are building out geopolitically reliable 300mm production capacity at scale to deliver the analog and embedded processing chips our customers need for years to come,” Ilan said in the release.
Republican Sen. Mitt Romney of Utah, who introduced legislation paving the way for CHIPS and the science bill, praised the agreement, arguing it would strengthen Utah’s role in national defense and economic success.
“To compete with China on the global stage, we must continue to drive innovation, cultivate scientific talent and expand research at home,” Romney said in a statement. “Texas Instruments’ expansion will strengthen America’s manufacturing capabilities and help us end our reliance on China for microchips.”
Utah Gov. Spencer Cox also praised the project, which is part of the “Silicon Slopes,” the nickname for Utah’s tech and startup community, which is primarily located in Utah County.
“Investing in semiconductor manufacturing not only creates jobs, but also brings supply chains back to America,” Cox said in a statement.
Texas Instruments estimates that the Lehi expansion will create 800 jobs and thousands more indirect jobs.
“The new (manufacturing facility) will produce tens of millions of analog and embedded processing chips every day that are found in all kinds of electronic devices,” a 2023 news release announcing the expansion said.
The facility is currently under construction and is scheduled to start production in 2026.
The Utah News Dispatch is part of States Newsroom, the nation’s largest state-focused nonprofit news organization.
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