Texas Instruments Secures Major CHIPS Act Funding for Growth

Texas Instruments Boosts Semiconductor Manufacturing with Funding

NEWS HIGHLIGHTS:

• U.S. Department of Commerce allocates up to $1.6 billion to Texas Instruments (TI) in CHIPS Act funding for three new 300mm semiconductor wafer fabs.
• TI anticipates an additional $6 billion to $8 billion from the U.S. Department of the Treasury for its investment in qualified manufacturing.
• Additionally, TI will receive up to $10 million to enhance workforce development programs.

Recently, Texas Instruments (TI) (Nasdaq: TXN) announced a significant funding agreement with the U.S. Department of Commerce, securing up to $1.6 billion through the CHIPS and Science Act. This investment is pivotal for powering the construction of three advanced semiconductor fabrication facilities that are underway. These fabs are part of TI's strategic expansion efforts aimed at bolstering domestic semiconductor manufacturing capabilities.

New Facilities Position TI at the Forefront of Semiconductor Production

TI is currently in the process of constructing new 300mm wafer fabs. This funding announcement reflects the commitment of both TI and the U.S. government to enhance the semiconductor ecosystem, ensuring a reliable supply of essential analog and embedded processing semiconductors. Haviv Ilan, president and CEO of Texas Instruments, expressed the company's gratitude for the government’s support, emphasizing TI's role in supplying foundational chips that power an increasing array of electronic devices.

Details of the CHIPS Act Funding

The funding awarded under the CHIPS Act will be utilized to support TI's major capital investments over the next several years. This financial assistance aims to ensure that TI can maintain its status as the largest analog semiconductor manufacturer in the U.S., providing low-cost production capacity at scale. The support from the CHIPS Act includes substantial provisions related to workforce development, indicating a holistic approach to building a resilient manufacturing ecosystem.

Significant Employment and Economic Impact

The construction of these new facilities is expected to create approximately 2,000 direct jobs within TI, alongside thousands of indirect job opportunities through related industries and construction efforts. TI is also focusing on developing its future workforce, which aligns with its commitment to sustainable manufacturing practices.

Impressive Manufacturing Capabilities

TI’s new fabs will be strategically located, enhancing its ability to produce tens of millions of critical semiconductor chips daily. These chips will serve various markets, including automotive, industrial, personal electronics, and enterprise systems. The funding will be released upon the successful completion of designated project milestones, which include the construction of cleanrooms and tool installations.

Sustainable Manufacturing Commitment

Texas Instruments has also reiterated its commitment to environmental stewardship. The new wafer fabs will operate entirely on renewable energy, reinforcing TI’s strategy of reducing its overall environmental footprint. By striving towards a 70% water reuse capability in its operations, TI is set to make significant strides in sustainable manufacturing practices. Furthermore, the company aims for its new facilities to meet LEED Gold standards, cementing its dedication to structural efficiency and sustainability.

Acknowledging Partnerships and Community Development

Collaboration will be a cornerstone of TI’s multi-fab sites, which will benefit from shared infrastructure, talent, and technology. This integrated approach encourages a cooperative environment among existing suppliers and community partners, fostering a comprehensive support network essential for TI’s continued success and expansion.

As TI navigates this new chapter in semiconductor manufacturing, the company's leadership remains optimistic about future innovations that promote accessibility and affordability in electronic devices.

Frequently Asked Questions

What is the significance of the CHIPS Act funding for Texas Instruments?

The CHIPS Act funding provides Texas Instruments with essential financial resources to build and expand its semiconductor manufacturing capabilities, ensuring a stable supply of crucial chips.

How many jobs will the new fabs create?

The construction of the new fabs is expected to generate around 2,000 direct jobs with thousands more indirect jobs from supporting industries.

What types of products will the new fabs produce?

The new facilities will manufacture a wide range of analog and embedded processing chips critical for sectors like automotive, industrial, and personal electronics.

How does TI plan to address sustainability in its operations?

TI is committed to sustainability by operating its new fabs entirely on renewable energy and aiming for significant water reuse capabilities.

What role does the U.S. government play in this funding?

The U.S. government supports Texas Instruments through financial incentives that strengthen domestic semiconductor manufacturing and workforce development.

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