Texas Instruments announced on Friday that it will receive up to $1.6 billion in funding from the U.S. Commerce Department to support the construction of three new semiconductor manufacturing facilities. This funding is part of the U.S. government's broader effort to enhance domestic chip production under the CHIPS and Science Act.
The allocated funds will be used to build two factories in Texas and one in Utah, as part of Texas Instruments' commitment of over $18 billion to these projects through 2029. These facilities are expected to create 2,000 manufacturing jobs, bolstering the company’s production capabilities.
In addition to the $1.6 billion from the Commerce Department, Texas Instruments anticipates receiving between $6 billion and $8 billion in investment tax credits from the U.S. Treasury Department, as well as $10 million in workforce development funding.
"With plans to grow our internal manufacturing to more than 95% by 2030, we're building geopolitically dependable, 300mm capacity at scale to provide the analog and embedded processing chips our customers will need for years to come," said CEO Haviv Ilan.
The CHIPS and Science Act, passed in 2022, aims to reduce U.S. dependence on foreign semiconductor production, particularly from Taiwan. The act provides $52.7 billion in subsidies for chip manufacturing and research, with major allocations already granted, including nearly $20 billion to Intel and $6.1 billion to Micron Technology earlier this year.
"This $1.6B will go a long way in helping Texas Instruments stay competitive," said Kinngai Chan, senior analyst at Summit Insights Group. He emphasized the importance of mature-node technology, in which Texas Instruments specializes, noting that China is also investing heavily in this area, which accounts for about half of global chip demand.
Texas Instruments has been benefiting from a resurgence in demand for its chips, which are widely used in a variety of products, from smartphones to automobiles. The company recently exceeded quarterly earnings expectations, reflecting its strong market position.
(Source:wwww.cnbctv18.com)
The allocated funds will be used to build two factories in Texas and one in Utah, as part of Texas Instruments' commitment of over $18 billion to these projects through 2029. These facilities are expected to create 2,000 manufacturing jobs, bolstering the company’s production capabilities.
In addition to the $1.6 billion from the Commerce Department, Texas Instruments anticipates receiving between $6 billion and $8 billion in investment tax credits from the U.S. Treasury Department, as well as $10 million in workforce development funding.
"With plans to grow our internal manufacturing to more than 95% by 2030, we're building geopolitically dependable, 300mm capacity at scale to provide the analog and embedded processing chips our customers will need for years to come," said CEO Haviv Ilan.
The CHIPS and Science Act, passed in 2022, aims to reduce U.S. dependence on foreign semiconductor production, particularly from Taiwan. The act provides $52.7 billion in subsidies for chip manufacturing and research, with major allocations already granted, including nearly $20 billion to Intel and $6.1 billion to Micron Technology earlier this year.
"This $1.6B will go a long way in helping Texas Instruments stay competitive," said Kinngai Chan, senior analyst at Summit Insights Group. He emphasized the importance of mature-node technology, in which Texas Instruments specializes, noting that China is also investing heavily in this area, which accounts for about half of global chip demand.
Texas Instruments has been benefiting from a resurgence in demand for its chips, which are widely used in a variety of products, from smartphones to automobiles. The company recently exceeded quarterly earnings expectations, reflecting its strong market position.
(Source:wwww.cnbctv18.com)
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