(Reuters) – Texas Instruments will receive as much as $1.6 billion in direct financing from the U.S. Commerce Department to support the construction of three new domestic factories, the analog chipmaker said on Friday.
The funding, under the CHIPS and Science Act, will help the company build two factories in Texas and one in Utah. Texas Instruments has committed $18 billion in investments through 2029 to the projects, which are expected to create 2,000 manufacturing jobs.
Texas Instruments also expects to receive approximately $6 billion to $8 billion in investment tax credits from the U.S. Treasury Department and another $10 million in workforce development funding.
“We plan to grow our internal production to over 95% by 2030, building a geopolitically viable 300mm capacity at scale to deliver the analog and embedded processing chips our customers will need for years to come,” said CEO Haviv Ilan.
The United States is committed to increasing domestic semiconductor production through the U.S. CHIPS Act. Passed in 2022, the act could provide $52.7 billion in funding, including $39 billion in subsidies for semiconductor manufacturing and $11 billion for R&D.
The Biden administration has awarded Intel nearly $20 billion in grants and loans this year, and $6.1 billion in grants to memory chip maker Micron Technology under the CHIPS Act.
“With this proposed investment by the Biden-Harris administration in TI (Texas Instruments) … we would help secure the supply chain for these fundamental semiconductors, which are used in every sector of the American economy,” said U.S. Secretary of Commerce Gina Raimondo.
Texas Instruments has one of the largest customer bases in the industry, as its chips are used in everything from smartphones to cars.
The company’s shares rose 1.5% in premarket trading.
(Reporting by Deborah Sophia in Bengaluru; Editing by Janane Venkatraman and Shinjini Ganguli)
