Texas Instruments to Get $1.6B in Federal Funding for US Chip Plants

Texas Instruments has announced an agreement with the US Department of Commerce to receive up to $1.6 billion in federal grants and between $6 billion to $8 billion in tax credits to support the construction of three chip manufacturing plants in Texas and Utah. This funding is part of the Biden administration's efforts to enhance domestic semiconductor production under the 2022 Chips and Science Act, which allocates nearly $53 billion to bolster the US chip manufacturing sector and reduce reliance on foreign suppliers, particularly in light of national security concerns regarding China. Texas Instruments aims to increase its internal manufacturing capacity to over 95% by 2030, focusing on producing 300mm wafers, which are more efficient for making computer components compared to older 200mm wafers. The initiative is expected to create tens of thousands of jobs in the two states. The funding aligns with similar grants awarded to other semiconductor companies, including TSMC, Micron, Samsung, and Intel, as the US seeks to secure its semiconductor supply chain.

- Texas Instruments will receive $1.6 billion in federal funding for chip plants.

- The funding is part of the Biden administration's Chips and Science Act.

- The company plans to increase its manufacturing capacity to over 95% by 2030.

- The initiative aims to create tens of thousands of jobs in Texas and Utah.

- The move is part of a broader strategy to secure the US semiconductor supply chain.