The United States Department of Commerce announced on August 16, 2024, a total of $4.6 billion in funding to Texas Instruments, the world's leading analog chip maker, under the CHIPS Act, including $1.6 billion in direct grants and $3 billion in loans. The move aims to accelerate the development of the semiconductor industry in United States and enhance its competitiveness in the global supply chain.
It is reported that the funds will be mainly used by Texas Instruments to build new factories in Utah and Texas. The United States Commerce Department said the investments will push Texas Instruments to implement its plan to build a plant of more than $18 billion by 2030. Texas Instruments is also expected to receive between $6 billion and $8 billion in investment tax credits from the United States Treasury Department, as well as $10 million in workforce development funding.
Texas Instruments plans to build new factories in Utah and Texas, United States, to expand its semiconductor production capacity. According to a statement from the United States Department of Commerce, the funds will be used to help build one plant in Utah and two plants in Texas. Specifically, Texas Instruments' second 12-inch wafer fab in Lehi, Utah, is expected to come on stream in 2026. The facility, which will be adjacent to Texas Instruments' existing 12-inch wafer fabrication facility LFAB in the same region, will produce tens of millions of analog and embedded processing chips per day for a wide range of electronics applications in the global market.
Figure: Texas Instruments receives $4.6 billion in CHIPS Act grants
In addition, Texas Instruments is building four 12-inch semiconductor fabs in Sherman, Texas. The construction of these facilities is part of Texas Instruments' long-term strategy to build capacity to support customers' growing needs for decades to come. These investments are expected to create about 2,000 manufacturing jobs and thousands of construction jobs. Through these expansions, Texas Instruments will strengthen its manufacturing capabilities in analog and embedded processing chips to meet the needs of the global market.
The investment is expected to create approximately 2,000 manufacturing jobs and thousands of construction jobs. This will not only bring direct employment opportunities to the local economy, but will also have a positive knock-on effect on the related supply chain and service industries.
With the rapid development of the global semiconductor industry, this supportive action by the United States government reflects its emphasis on maintaining technological leadership. This expansion plan by Texas Instruments will help United States capture a larger share of the global semiconductor market and will also have a significant impact on the global semiconductor supply chain.
The implementation of the CHIPS Act is not limited to support for Texas Instruments. Previously, a number of companies, including SK hynix, Micron Technology, Samsung and TSMC, also received huge subsidies from the United States government. The injections are expected to triple United States' chip production by 2032 and increase United States' share of global chip production from 12% in 2020 to about 14% in 2032.
The $4.6 billion financial support provided by the United States government to Texas Instruments is not only an investment in a single enterprise, but also a shot in the arm for the entire domestic semiconductor industry. In the context of increasing competition in the global semiconductor industry, this action will help United States consolidate its leadership position in the global semiconductor industry and promote the advancement and innovation of related technologies.
