TI: Major Funding Boost for 300mm Chip Factories

US CHIPS and Science Act Texas Instruments: Major Funding Boost for 300mm Chip Factories

2024-08-21 From Kristin Rinortner | Translated by AI 3 min Reading Time

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Texas Instruments (TI) is set to receive up to $1.6 billion in funding from the CHIPS and Science Act for its three 300mm wafer fabs under construction in Texas and Utah. Additionally, TI is expected to benefit from an investment tax credit estimated between $6 to $8 billion. The package also includes $10 million to support the creation of 2,000 new jobs..

US Chips Act: The US Department of Commerce has proposed a direct allocation of up to 1.6 billion US dollars from the CHIPS and Science Act to TI, intended as funding for three 300mm wafer fabs under construction in Texas and Utah.(Image: TI) — US Chips Act: The US Department of Commerce has proposed a direct allocation of up to 1.6 billion US dollars from the CHIPS and Science Act to TI, intended as funding for three 300mm wafer fabs under construction in Texas and Utah.
(Image: TI)

Texas Instruments (TI) and the U.S. Department of Commerce have signed a non-binding preliminary Memorandum of Terms, which aims to allocate up to $1.6 billion from the CHIPS and Science Act. This would subsidize the three 300-mm wafer fabs currently under construction in the U.S. states of Texas and Utah. In addition, TI expects to receive an investment tax credit from the U.S. Treasury Department estimated at $6 to $8 billion for qualified investments in U.S. production. The proposed direct funding and tax credit would help TI ensure a geopolitically reliable supply of essential analog and embedded processing semiconductors.

TI had invested $11 billion in the construction of the 300-mm plant in Lehi (Utah) LFAB2. The groundbreaking took place in November 2023. Production is set to start in 2026. The prospect of grants played a significant role at that time.

"The historic CHIPS Act is expanding semiconductor manufacturing capacity in the U.S. and also increasing the strength and resilience of the semiconductor ecosystem," explained Haviv Ilan, President and CEO of Texas Instruments. "Our investments further expand our competitive advantage in manufacturing and technology by expanding our 300-mm production capacities in the U.S. With our plans to increase our internal manufacturing share to over 95% by 2030, we are building a geopolitically reliable 300-mm production capacity on a large scale to be able to deliver those analog and embedded processing chips that will be demanded by our customers in the coming years."

National manufacturing capacities for analog and embedded chips

Since its founding over 90 years ago, TI has consistently advanced technology, pioneering the switch from tubes to transistors and finally to integrated circuits. Today, TI is the largest manufacturer of analog and embedded processing semiconductors in the U.S. The semiconductors are used in nearly all types of electronic devices—from cars to medical equipment and smart home appliances.

The proposed direct funding from the CHIPS Act would support TI's investments, which will amount to more than $18 billion through 2029 and are part of the company's broader production investments. The direct funding would benefit three new wafer fabs, namely SM1 and SM2 plants in Sherman, Texas, and the LFAB2 plant in Lehi, Utah. More specifically, the following projects are involved:

Construction and build of the SM1 clean room and the complete pilot line for the first production,
Construction and build of the LFAB2 clean room for the first production,
Construction of the SM2 shell.

The connected sites, encompassing multiple factories, benefit from a shared infrastructure as well as the joint use of expertise and technologies, complemented by a strong network of suppliers and community partners. The plants are expected to produce semiconductors using 28- to 130-nm technology with the optimal cost, performance, power consumption, accuracy, and voltage profile required for TI's broad portfolio of analog and embedded chips.

Increasing the staff count

The company will create over 2,000 new jobs in its three new fabs in Texas and Utah, to which thousands of indirect jobs in the construction industry, from suppliers, and in supporting industries will be added.

To build a future-ready workforce, TI is enhancing the skills of its current employees, expanding its internship offerings, and establishing pipeline programs with a focus on generating skills in electronics and mechanics. For education, TI also maintains solid relationships with 40 community colleges, high schools, and military facilities all over the U.S.

"The proposed CHIPS funding additionally supports TI's investment in its new semiconductor fab in Lehi and also strengthens Utah's critical role in our national defense and economic success," emphasized U.S. Senator Mitt Romney. "I was among the original sponsors of the CHIPS and Science Act that made today's announcement possible. To compete globally, we must continue to foster innovation and scientific talent and expand domestic research. The expanded Texas Instruments sites will contribute to the U.S. being able to produce on a larger scale those chips that are crucial for our national security and economy."

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Establishing a sustainable production

The company's 300-mm fabs are powered exclusively by renewable electricity, and all new 300-mm fabs are designed to meet LEED Gold standards in terms of structural efficiency and sustainability. Moreover, the 300-mm manufacturing facilities offer advantages in reducing waste and lowering water and energy consumption per chip. (kr)