Texas Instruments and the CHIPS Act: Boosting Domestic Silicon Production
Texas Instruments Receives CHIPS Act Funding
Texas Instruments (TI) is the latest beneficiary of the CHIPS Act, securing $1.6 billion in grants to fortify domestic silicon production. Signed into law by President Biden, the CHIPS Act aims to counter the rising tide of Chinese chip imports. Along with the grant, TI stands to gain $3 billion in loans and tax credits, potentially totaling between $6 to $8 billion.
Creating Jobs and Supporting Industries
- This initiative is projected to generate over 2,000 new manufacturing jobs at TI’s expanding facilities.
- Moreover, thousands of indirect jobs are anticipated in construction and supplier sectors.
- TI plans to allocate an additional $10 million for workforce development.
Investment in Silicon Production Facilities
The grant will be used for three chip fabs currently being built in Texas and Utah, focusing on 300mm silicon wafer chips that cater to legacy technology needs. The CHIPS Act specifically reserves funding for legacy chips, essential for everyday devices like smartphones, home appliances, and national defense applications.
- GlobalFoundries also received $1.5 billion earlier this year for similar purposes.
- The U.S. government has now met its minimum quota for legacy chip funding.
Strategic Response to Global Competition
China has ramped up its investments in legacy chips, underlining the importance of the CHIPS Act in reducing U.S. dependence on foreign manufactured semiconductors. Besides TI, major players like Intel and TSMC have also received significant funding from the act.
Strategic Investments and Future Outlook
Texas Instruments plans to spend around $40 billion on its facilities in the U.S., including two new factories in Sherman, Texas, expected to become operational post-2030. The Commerce Department prioritizes projects for federal funding that can start delivering by the end of the decade.
A Legislative Milestone
The $280 billion CHIPS Act, ratified in 2022, emphasizes domestic manufacturing and workforce training, with a total of $39 billion allocated for chip production incentives and additional financial support measures.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.