The company will expand its semiconductor production capacity in the U.S., enhancing supply chain resilience and environmental sustainability.
Texas Instruments (TI) has finalized a funding agreement with the U.S. Department of Commerce under the CHIPS Act, securing $1.61 billion in direct support for the construction of three new 300 mm semiconductor wafer factories in Sherman, Texas, and Lehi, Utah. Additionally, TI expects to receive between $6 billion and $8 billion in tax credits for manufacturing investments, along with $10 million for workforce development initiatives in both locations.
Project Details
The funding will support the construction and equipping of three key facilities:
- SM1 (Sherman, Texas): Cleanroom and tool facility.
- SM2 (Sherman, Texas): Construction of a new plant that will share infrastructure with SM1.
- LFAB2 (Lehi, Utah): Cleanroom and tool facility for a second plant in Lehi.
These factories, which will produce essential analog and embedded processing chips for sectors such as automotive, industrial, and communications, are part of TI’s strategy to deliver geopolitically reliable and low-cost manufacturing capacity.
Employment and Sustainability Impact
TI expects that these projects will create 2,000 direct jobs at the company, as well as thousands of indirect jobs in construction, suppliers, and related industries. As part of TI’s commitment to sustainability, the new factories will be powered exclusively by renewable electricity and designed to meet LEED Gold standards, minimizing their environmental impact. Furthermore, the facilities in Sherman and Lehi are being configured to reuse up to 70% of the water used in their operations.
Haviv Ilan, President and CEO of TI, emphasized:
“As the largest manufacturer of analog and embedded semiconductors in the United States, TI is committed to providing reliable, large-scale manufacturing capacity. We appreciate the government’s support in strengthening the semiconductor ecosystem and making it more resilient.”
A Step Towards Technological Self-Sufficiency
The agreement with TI is part of the broader effort of the CHIPS Act to revitalize the semiconductor industry in the U.S. To date, the program has allocated more than $32 billion for projects aimed at increasing domestic manufacturing capacity, reducing dependence on foreign suppliers, and enhancing national security.
Gina Raimondo, Secretary of Commerce, highlighted:
“These investments ensure that the United States remains at the forefront of advanced semiconductor production, essential for artificial intelligence and national security, while creating thousands of jobs and revitalizing communities across the country.”
A Continued Commitment to Innovation
With this project, Texas Instruments reaffirms its leadership in semiconductor manufacturing and its focus on providing sustainable and affordable solutions. These investments not only strengthen their production capacity but also demonstrate the transformative impact of collaboration between the private sector and government policies to ensure the technological competitiveness of the United States in a highly competitive global market.
via: texas instruments