#United States #Semiconductor #Texas Instruments #CHIPS Act #Sherman, Texas; Lehi, Utah

Texas Instruments' New Semiconductor Expansion

Texas Instruments (TI), one of the leaders in the semiconductor industry, is making headlines with its recent announcement of an award agreement worth up to $1.6 billion. This funding, provided by the U.S. Department of Commerce, is part of the CHIPS and Science Act and aims to bolster semiconductor manufacturing capabilities in the United States, specifically at new facilities being built in Texas and Utah.

The agreement arrives as part of the broader initiative to enhance the domestic supply of semiconductors, a fundamental component in an increasing number of electronic devices. The awarded funds are expected to facilitate the construction and operational enhancements of three new 300mm semiconductor wafer fabs. Two of these facilities will be located in Sherman, Texas, while the third will be in Lehi, Utah.

As mentioned by Haviv Ilan, president and CEO of TI, this expansion positions the company uniquely as the largest manufacturer of analog and embedded processing semiconductors in the U.S. The recent funding agreement is seen as a significant step toward making the semiconductor ecosystem within the country more robust and geopolitically reliable. The intent is to ensure these critical components can be produced domestically, further reducing reliance on international supply chains.

Details of the Funding Agreement

The funding received through the CHIPS Act will support TI's extensive manufacturing efforts through 2029 and will cover various project milestones, which include:

• - Completion of cleanroom construction and tool installations at the Sherman fab (SM1).
• - Ongoing construction for another fab (SM2) in Sherman.
• - Cleanroom construction and tool installations at the Lehi fab (LFAB2).

The anticipated completion of these fabs is slated to enable the manufacture of tens of millions of essential chips daily, which are critical for several key sectors including automotive, industrial, personal electronics, communications, and enterprise systems.

Moreover, TI expects to benefit from further financial support through the U.S. Department of the Treasury's Investment Tax Credit program. This could amount to an additional $6 billion to $8 billion aimed at qualified U.S. manufacturing investments. Alongside this, the company is also set to receive up to $10 million intended for workforce development initiatives, further underscoring their commitment not just to production but also to the training and sustainability of the industry’s future labor force.

Broad Impacts and Future Commitment

The infrastructure of TI's three new semiconductor fabs will operate effectively together, sharing resources, talent, and technology to drive efficiencies in production and supply chain management. As part of these developments, the construction projects are expected to create approximately 2,000 direct jobs within TI, complemented by thousands of additional jobs in construction and supply industries.

Texas Instruments is also making strides toward sustainable manufacturing. The new fabs are designed to be powered entirely by renewable energy sources, aligning with TI's long-standing commitment to environmental stewardship. Their aim includes achieving 70% water reuse within their operations in both Texas and Utah, demonstrating a responsible approach to utilizing natural resources.

Furthermore, all new facilities are designed to meet LEED Gold standards, ensuring they adhere to high standards of architectural efficiency and sustainability.

In conclusion, Texas Instruments is not only expanding its manufacturing capabilities but also setting a precedence for responsible and sustainable practices in the semiconductor industry. The collaboration with the U.S. government under the CHIPS Act symbolizes a critical pivot toward resilience in the supply chain for semiconductor manufacturing, which is vital for powering the electronic devices of tomorrow.

For additional details and updates on this announcement, Texas Instruments has made various resources available including press kits and multimedia content showcasing the advancements in their semiconductor initiatives.