Texas Instruments announced Friday it will receive up to $1.6 billion from the U.S. Commerce Department for new chip facilities.
The U.S. CHIPS and Science Act funding will thus enable the company to build two Texas factories and one in Utah.
Texas Instruments has pledged over $18 billion through 2029, aiming to create 2,000 manufacturing jobs through these projects.
The chipmaker anticipates $6-8 billion in tax credits and $10 million for workforce development from the U.S. Treasury Department.
“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 analog and embedded processing chips our customers will need for years to come,” CEO Haviv Ilan said.
The U.S. aims to increase domestic semiconductor production and lessen dependence on Taiwan through the 2022 CHIPS Act, offering $52.7 billion.
It awarded nearly $20 billion in grants and loans to Intel and $6.1 billion in grants to Micron Technology earlier this year.
“This $1.6B will go a long way in helping Texas Instruments stay competitive,” said Kinngai Chan, senior analyst at Summit Insights Group.
“While TI doesn’t play in the cutting-edge process node, mature-node (a less advanced technology) is still very important for the US semiconductor industry,” Chan said, noting China was also spending on mature nodes, which represent about half the global chip demand.
Texas Instruments, benefiting from rising chip demand for smartphones and cars, exceeded quarterly earnings estimates last month.
Click here for more Technology news.