Texas Instruments awarded up to $1.6B in CHIPS Act funding

Texas Instruments (TXN) and the U.S. Department of Commerce announced an award agreement of up to $1.6B 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. Support from the CHIPS Act, including the 25% investment tax credit, will 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. The CHIPS Act direct funding will support TI’s investments through 2029 for three large-scale 300mm wafer fabs in Sherman, Texas, and Lehi, Utah. Specifically, the CHIPS Act direct funding will be distributed upon completion of project milestones, supporting: 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. Combined, TI’s three new fabs in Texas and Utah will create 2,000 company jobs, along with thousands of indirect jobs for construction, suppliers and supporting industries. TI is also investing in building its future workforce. As part of the CHIPS Act award agreement, TI will also receive up to $10M for workplace development efforts in Texas and Utah.