Texas Instruments (NASDAQ:TXN) (TI) has secured up to $4.6 billion in grants and loans from the US government for the construction of three new semiconductor manufacturing facilities in Texas and Utah.
The company said in a statement on Friday it has signed a preliminary agreement to receive up to $1.6 billion under the CHIPS and Science Act, which provides financial incentives to US firms advancing semiconductor research and production.
In addition, the CHIPS Program Office will make available approximately $3 billion in proposed loans.
In Sherman, Texas, TI plans to construct two new, large-scale 300-mm chip fabrication facilities. These facilities will produce essential chips with sizes ranging from 65nm to 130nm, with a projected capacity of over 100 million chips daily. This site is one of the few greenfield production sites for 300-mm wafer chips in the US.
In Lehi, Utah, a new large-scale 300-mm fabrication facility is being built to produce 28nm to 65nm analog and embedded processing chips. It is expected to produce tens of millions of chips each day, marking the largest economic investment in Utah’s history, TI said.
"The historic CHIPS Act is enabling more semiconductor manufacturing capacity in the US, making the semiconductor ecosystem stronger and more resilient," TI CEO Haviv Ilan said in a statement.
"Our investments further strengthen our competitive advantage in manufacturing and technology as we expand our 300mm manufacturing operations in the U.S. 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."
Gina Raimondo, US Secretary of Commerce, added: "With this proposed investment from the Biden-Harris Administration in TI, a global leader of production for current-generation and mature-node chips, we would help secure the supply chain for these foundational semiconductors that are used in every sector of the US economy, and create tens of thousands of jobs in Texas and Utah.”