Janice R. Andrews
The CHIPS Act has given Texas Instruments (TI) $1.6 billion in financing, which will significantly increase the country’s silicon output. President Biden signed the 2022 CHIPS Act into law with the intention of decreasing American dependency on foreign semiconductor suppliers, especially those in China, by supporting the country’s chip manufacturing sector. More than 2,000 manufacturing jobs will be created by the development of three new semiconductor fabrication factories (fabs) in Texas and Utah thanks to this investment.
Texas Instruments will gain from $3 billion in loans and tax credits, which might add up to $6 billion or $8 billion, in addition to the $1.6 billion in grants. This cash infusion will assist TI in growing its manufacturing capacity and further the larger objective of the US government to boost homegrown chip manufacture. An extra $10 million is anticipated for workforce development, which will guarantee that the organization has the skills needed to service the growing market.
The three chip fabs that are now under development will produce 300mm silicon wafer chips, which will help meet the $2 billion minimum allotted for legacy chips under the CHIPS Act. These legacy chips, in contrast to modern silicon employed in cutting-edge technologies like artificial intelligence, are necessary for commonplace items like cellphones, appliances, and national security systems. The emphasis on legacy chips also takes into account the rising need for these parts worldwide, which are essential to a wide range of businesses.
The significance of home manufacture is shown by China’s recent rise in investments in legacy chips. The CHIPS Act seeks to limit China’s dominance in the world semiconductor industry in addition to generating jobs in the United States. Texas Instruments joins other large firms that have benefited greatly from CHIPS Act financing to increase domestic chip manufacture, such as Intel, TSMC, and Samsung.
TI has declared its intention to invest over $40 billion in Utah and Texas, which includes the construction of two more plants in Sherman, Texas. However, according to the existing CHIPS Act standards, which give priority to projects that must be finished by the end of the decade, these facilities are not scheduled to be operational until after 2030 and will not be eligible for government funding.
Passed in 2022 with bipartisan support, the $280 billion CHIPS Act includes $13 billion for worker training, 25 percent tax credits for manufacturing expenses, and $39 billion in subsidies for domestic chip manufacture. The plan, according to President Biden, will improve national security by lowering reliance on foreign suppliers of semiconductors and guaranteeing that American laborers, including union members, are essential to the development of new manufacturing facilities around the nation.
The CHIPS Act money is expected to be essential in helping Texas Instruments advance its expansion goals and maintain its competitive position in the global semiconductor market.
