U.S. chipmaker Texas Instruments will receive $1.6 billion in government funding to aid the company’s plans for new manufacturing plans.
The investment is part of the CHIPS Act that the U.S. government set up in an effort to boost the country’s semiconductor industry and end its dependence on foreign manufacturers. Aside from $1.6 billion in funding, Texas Instruments will also receive a $3 billion loan and be in a position to claim federal tax credits of approximately $6 billion.
Texas Instruments intends to invest $18 billion to construct two production plants in Sherman, Texas, as well as one in Lehi, Utah. The project is expected to create more than 2,000 manufacturing jobs.
“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 analogue and embedded processing chips our customers will need for years to come,” Texas Instruments CEO Haviv Ilan said in a statement.
The U.S. government passed the CHIPS Act in 2022 after the pandemic exposed flaws in the supply chain of semiconductors, which are crucial for electronic devices. It is estimated that only 10% of the world’s chips are domestically produced versus the 37% share that U.S. semiconductor manufacturers had in the early 1990s.