Construction is underway on two of Texas Instruments’ new 300mm semiconductor wafer fabs in Sherman, Texas, SM1 and SM2. (Photo: PRNewswire/Texas Instruments)
Up to $1.6 billion in direct funding will supports TI’s semiconductor manufacturing expansions in Texas and Utah.
LEHI, Utah and SHERMAN, Texas—Texas Instruments (TI) and the U.S. Department of Commerce recently announced an award agreement of up to $1.6 billion in direct funding through the U.S. CHIPS and Science Act, following the preliminary memorandum of terms announced in August 2024.
The funding will help support three of TI’s new 300mm wafer fabs currently under construction in Texas and Utah, according to a release from Texas Instruments. Support from the CHIPS Act, including the 25 percent investment tax credit, is intended to help TI provide a geopolitically dependable supply of essential analog and embedded processing semiconductors.
“As the largest analog and embedded processing semiconductor manufacturer in the U.S., TI is uniquely positioned to provide dependable, low-cost 300mm semiconductor manufacturing capacity at scale,” said Haviv Ilan, president and CEO of Texas Instruments, in the release. “The increasing number of electronic devices in our lives depends on our foundational chips, and we appreciate the support from the U.S. government to make the semiconductor ecosystem stronger and more resilient.”
The CHIPS Act direct funding will support TI’s investments through 2029 for three large-scale 300mm wafer fabs in Sherman, Texas (SM1 and SM2), and Lehi, Utah (LFAB2). Together, these fabs will manufacture tens of millions of analog and embedded processing chips every day that are critical to a variety of end markets, including automotive, industrial, personal electronics, communications equipment and enterprise systems, the release stated.
Texas Instruments said it expects to receive an estimated $6 billion to $8 billion from the U.S. Department of the Treasury’s Investment Tax Credit for qualified U.S. manufacturing investments.
The CHIPS Act direct funding will be distributed upon completion of project milestones. It will support cleanroom construction and tool installations at SM1 in Sherman, Texas; shell construction of SM2, a second fab in Sherman, Texas; and cleanroom construction and tool installations at LFAB2, a second fab in Lehi, Utah.
These connected, multi-fab sites in Texas and Utah will benefit from shared infrastructure, talent and technology sharing, and a strong network of existing suppliers and community partners, the company said in the release.
Combined, TI’s three new fabs in Texas and Utah are expected to create 2,000 company jobs, along with thousands of indirect jobs for construction, suppliers, and supporting industries.
Texas Instruments is also investing in building its future workforce. As part of the CHIPS Act award agreement, TI will also receive up to $10 million for workplace development efforts in Texas and Utah, according to the release.
Consistent with TI’s longstanding commitment to responsible, sustainable manufacturing and environmental stewardship, the company’s 300mm wafer fabs will be entirely powered by renewable electricity. The company also said it is committed to reducing overall water consumption across its operations.