Texas Instruments (TI) is set to receive significant funding to advance its semiconductor manufacturing capabilities. Recently, TI and the U.S. Department of Commerce signed a preliminary memorandum outlining the provision of up to $1.6 billion in proposed direct funding under the CHIPS and Science Act. This funding will support the development of three new 300 mm wafer fabrication plants currently under construction in Texas and Utah.
Details of the Funding
The memorandum of terms, although non-binding, signals an important step in securing financial support for TI’s ongoing projects. In addition to the $1.6 billion in direct funding, TI is also expected to receive an estimated $6 billion to $8 billion through the U.S. Department of Treasury’s Investment Tax Credit for qualified U.S. manufacturing investments. Together, these funds aim to provide a robust financial foundation for TI’s manufacturing expansion.
Impact on Semiconductor Supply
The proposed funding and tax credits are designed to ensure a reliable supply of essential analog and embedded processing semiconductors. With global supply chains facing disruptions, TI’s enhanced manufacturing capabilities in Texas and Utah will provide a more stable and geopolitically dependable source of these critical components. This initiative aligns with broader efforts to bolster the U.S. semiconductor industry and reduce dependence on foreign suppliers.
Future Prospects
The support from the CHIPS and Science Act, combined with the investment tax credit, is poised to significantly bolster TI’s semiconductor manufacturing capacity. This investment not only enhances TI’s production capabilities but also reinforces the United States’ position in the global semiconductor market. As construction progresses on the new wafer fabs, TI is well-positioned to meet growing demand for advanced semiconductor technologies.
 is set to receive up to $1.6 billion in funding under the CHIPS and Science Act to advance its semiconductor manufacturing capabilities. This funding supports the development of three new wafer fabrication plants in Texas and Utah, aimed at securing a stable supply of critical semiconductors. Additionally, TI will benefit from $6 to $8 billion in Investment Tax Credits for U.S. manufacturing investments. These initiatives will enhance TI's production capacity and bolster the U.S. semiconductor industry, reducing dependency on foreign suppliers.){kind=link}