Texas Instruments finalizes award agreement for $1.6 billion CHIPS Act funding

Texas Instruments has announced the finalization of an agreement with the U.S. Department of Commerce for $1.6 billion in U.S. CHIPS and
Science Act funding. The grants will be used, in part, for the major addition (indicated in blue) that is currently under construction at the company's
300-millimeter wafer fabrication plant in Lehi. Texas Instruments photo.

Computer chip manufacturer Texas Instruments (TI) and the U.S. Department of Commerce have announced an award agreement of up to $1.6 billion in direct funding through the U.S. CHIPS and Science Act to help support three of TI’s new 300-millimeter wafer fabrication plants (fabs) currently under construction in Lehi and in Texas. A memorandum of terms of the agreement was first announced in August.

“Support from the CHIPS Act, including a 25 percent investment tax credit, will help TI provide a geopolitically dependable supply of essential analog and embedded processing semiconductors,” TI said in a release.

“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 increasing number of electronic devices in our lives depend on our foundational chips, and we appreciate the support from the U.S. government to make the semiconductor ecosystem stronger and more resilient.”

The new funding will support TI’s investments through 2029 for three large-scale 300mm wafer fabs in Sherman, Texas (SM1 and SM2), and Lehi (LFAB2). Together, these fabs will manufacture tens of millions of analog and embedded processing chips every day that are used in a variety of end markets, including automotive, industrial, personal electronics, communications equipment and enterprise systems.

At the Lehi plant, funds will be used for cleanroom construction and tool installation, TI said. In 2022, the Utah Governor’s Office of Economic Opportunity announced state incentives from the Economic Development Tax Increment Financing (EDTIF) tax credit program to Texas Instruments for fiscal 2023 for its Lehi expansion. TI and GOEO said at the time that the project was expected to produce 800 jobs, $111.45 million in new state taxes and wages of about $2.44 billion over the next two decades.

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 $10 million for workplace development efforts in Texas and Utah.