NEWS HIGHLIGHTS:
- The U.S. Department of Commerce has proposed up to $1.6 billion for TI in direct funding through the
CHIPS and Science Act to support three 300mm semiconductor wafer
fabs under construction in Texas
and Utah.
- TI expects to receive an estimated $6
billion to $8 billion from the
U.S. Department of Treasury's Investment Tax Credit for qualified
U.S. manufacturing investments.
- The company also expects to receive $10
million in proposed funding for workforce development, as it
creates over 2,000 new TI jobs and thousands of indirect jobs for
construction, suppliers and supporting industries.
LEHI,
Utah, and SHERMAN,
Texas, Aug. 16, 2024 /PRNewswire/ -- Texas
Instruments (TI) (Nasdaq: TXN) and the U.S. Department of Commerce
have signed a non-binding Preliminary Memorandum of Terms for up to
$1.6 billion in proposed direct
funding under the CHIPS and Science Act to support three 300mm
wafer fabs already under construction in Texas and Utah. In addition, TI expects to receive an
estimated $6 billion to $8 billion from the U.S. Department of Treasury's
Investment Tax Credit for qualified U.S. manufacturing investments.
The proposed direct funding, coupled with the investment tax
credit, would help TI provide a geopolitically dependable supply of
essential analog and embedded processing semiconductors.
"The historic CHIPS Act is enabling more semiconductor
manufacturing capacity in the U.S., making the semiconductor
ecosystem stronger and more resilient," said Haviv Ilan, president and CEO of Texas
Instruments. "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."
Building geopolitically dependable capacity for analog and
embedded processing chips
Since its founding more than 90 years ago, TI has been advancing
technology, pioneering the transition from vacuum tubes to
transistors and then to integrated circuits. Today, TI is the
largest U.S. analog and embedded processing semiconductor
manufacturer. TI chips are essential in nearly every type of
electronic device, from cars with advanced safety and intelligence
systems to life-saving medical equipment and smart appliances that
make homes safer and more efficient.
The proposed direct funding under the CHIPS Act would support
TI's investment of more than $18
billion through 2029, which is part of the company's broader
investment in manufacturing. This proposed direct funding will
support three new wafer fabs, two in Sherman, Texas, (SM1 and SM2) and one in
Lehi, Utah (LFAB2), specifically
to:
- Construct and build the SM1 cleanroom and complete pilot line
for first production;
- Construct and build the LFAB2 cleanroom for first production;
and
- Construct the SM2 shell.
These connected, multi-fab sites benefit from shared
infrastructure, talent and technology sharing, and a strong network
of suppliers and community partners. They will produce
semiconductors in 28nm to 130nm technology nodes, which provide the
optimal cost, performance, power, precision and voltage levels
required for TI's broad portfolio of analog and embedded processing
products.
"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 U.S. economy, and create tens of thousands of
jobs in Texas and Utah," said U.S. Secretary of Commerce
Gina Raimondo. "The CHIPS for
America program will supercharge American technology and innovation
and make our country more secure – and TI is expected to be an
important part of the success of the Biden-Harris Administration's
work to revitalize semiconductor manufacturing and development in
the U.S."
Building a stronger workforce
With a long history of supporting its employees to build
long-term, successful careers, TI is also investing in building its
future workforce. TI will create more than 2,000 company jobs
across its three new fabs in Texas
and Utah, along with thousands of
indirect jobs for construction, suppliers and supporting
industries.
"We are proud to work with Texas Instruments as they build new
semiconductor fabs in Sherman and
solidify Texas as the best state
for semiconductors. Texas Instruments invented the microchip in
Texas, and we are honored to be
home to TI's semiconductor manufacturing facilities in Dallas, Richardson and Sherman," said Texas Gov. Greg
Abbott. "With this latest project, TI is building on its
more than 90-year legacy in Texas
and adding thousands of good-paying jobs for Texans to manufacture
critically important technology."
"By investing in semiconductor manufacturing, we are helping
secure this vulnerable supply chain, boosting our national security
and global competitiveness, and creating new jobs for
Texans," said U.S. Sen. John
Cornyn. "The chipmaking capabilities these
resources will enable at Texas Instruments will help the U.S.
reclaim its leadership role in the critically important
semiconductor industry, and I look forward to seeing more
Texas-led advancements in the
years to come."
In order to build a future-ready workforce, TI is enhancing the
skills of current employees, expanding internships and creating
pipeline programs with a focus on building electronic and
mechanical skills. TI has robust engagements with 40 community
colleges, high schools and military institutions across the U.S. to
develop future semiconductor talent.
"Utah is thrilled that Texas
Instruments is expanding its manufacturing presence in the Silicon
Slopes, furthering the impact Utahns have on critical semiconductor
technology," said Utah Gov.
Spencer Cox. "This investment in
semiconductor manufacturing not only creates more jobs, but also
brings supply chains back to the United
States."
"This proposed CHIPS funding will further support Texas
Instruments' investment in its new semiconductor fab in
Lehi —and enhance Utah's vital role in our national
defense and economic success," said U.S. Senator
Mitt Romney. "I was an
original sponsor of the CHIPS and Science Act—which made
today's announcement possible—because in order to compete on the
world stage, we must continue to promote innovation, foster
scientific talent, and expand research here at home. Texas
Instruments' expanded operations will help make the United
States more self-reliant for chips essential to our national
security and economy."
Building sustainable manufacturing
TI has a long-standing commitment to responsible, sustainable
manufacturing and environmental stewardship. As part of this
commitment, TI continually invests in its fabrication processes and
equipment to reduce energy, material and water consumption, and
greenhouse gas (GHG) emissions.
The company's 300mm wafer fabs will be entirely powered by
renewable electricity. Additionally, all of TI's new 300mm fabs are
designed to meet LEED Gold standards for structural efficiency and
sustainability. TI's 300mm manufacturing facilities bring
advantages in reducing waste and improving water and energy
consumption per chip.
TI semiconductors are and will increasingly play a critical role
in helping reduce the impact on the environment, helping customers
create smaller, more efficient and cost-effective technology
solutions that in turn drive continued innovation in
electrification and the expanded usage of renewable energy.
Learn more:
- TI CHIPS Act press kit (includes images, video b-roll, fact
sheet)
- TI Sherman, TX, press kit
- TI Lehi, UT, press kit
Notice regarding forward-looking statements
This release includes forward-looking statements intended to
qualify for the safe harbor from liability established by the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements generally can be identified by phrases
such as TI or its management "believes," "expects," "anticipates,"
"foresees," "forecasts," "estimates" or other words or phrases of
similar import. Similarly, statements herein that describe TI's
business strategy, outlook, objectives, plans, intentions or goals
also are forward-looking statements. All such forward-looking
statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from those in
forward-looking statements.
See Item 1A of TI's most recent Form 10-K for a detailed
discussion of risk factors that could cause results to differ
materially from the forward-looking statements. The forward-looking
statements included in this release are made only as of the date of
this release, and we undertake no obligation to update the
forward-looking statements to reflect subsequent events or
circumstances. If we do update any forward-looking statement, you
should not infer that we will make additional updates with respect
to that statement or any other forward-looking statement.
About Texas Instruments
Texas Instruments Incorporated (Nasdaq: TXN) is a global
semiconductor company that designs, manufactures, and sells analog
and embedded processing chips for markets such as industrial,
automotive, personal electronics, communications equipment and
enterprise systems. At our core, we have a passion to create a
better world by making electronics more affordable through
semiconductors. This passion is alive today as each generation of
innovation builds upon the last to make our technology more
reliable, more affordable and lower power, making it possible for
semiconductors to go into electronics everywhere. Learn more
at TI.com.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/texas-instruments-signs-preliminary-agreement-to-receive-up-to-1-6-billion-in-chips-and-science-act-proposed-funding-for-semiconductor-manufacturing-in-texas-and-utah-302224237.html
SOURCE Texas Instruments