U.S. Awards $1.6B to Texas Instruments to Build Semiconductor Plants

The Biden administration has announced a grant of up to $1.6 billion to Texas Instruments to support the construction of three new semiconductor manufacturing plants, two in Sherman, Texas, and one in Lehi, Utah. This funding is part of the CHIPS Act, which aims to enhance domestic semiconductor production and reduce reliance on foreign sources, particularly in light of supply chain vulnerabilities exposed during the pandemic. In addition to the grant, Texas Instruments may receive up to $3 billion in loans and federal tax credits covering 25% of the construction costs, contributing to an overall investment of over $18 billion by the company. The new facilities are projected to create more than 2,000 jobs, with the Sherman plant expected to begin production in 2025 and the Lehi plant in 2026. The initiative is part of a broader effort to increase U.S. semiconductor manufacturing capacity, which has declined from 37% in 1990 to about 10% today. The Semiconductor Industry Association estimates that these investments could triple domestic chip manufacturing capacity by 2032. Despite these advancements, concerns remain about the long-term viability of some semiconductor companies, as evidenced by Intel's recent announcement of significant job cuts.

- The U.S. government is awarding $1.6 billion to Texas Instruments for new semiconductor plants.

- The funding is part of the CHIPS Act aimed at boosting domestic semiconductor production.

- The new plants are expected to create over 2,000 jobs and begin production between 2025 and 2026.

- The initiative seeks to increase U.S. semiconductor manufacturing capacity from 10% to 14% by 2032.

- Concerns persist about the long-term viability of some semiconductor companies despite increased investments.