The U.S. Department of Commerce has awarded Texas Instruments up to $1.61 billion in direct funding under the CHIPS and Science Act. This financial support is intended to strengthen the domestic supply chain, advance national security, and improve U.S. competitiveness in semiconductor production. The funding will assist the company in executing a broader investment plan exceeding $18 billion through the end of the decade.
The capital will be used to construct three state-of-the-art fabrication facilities. Two of these plants are planned for Texas, while the third will be located in Utah. The projects are expected to generate more than 2,000 manufacturing positions and over 20,000 construction jobs over time.
Texas Instruments, headquartered in Dallas, is a major manufacturer of analog and embedded processing semiconductors. The company specializes in current-generation and mature-node chips, which serve as foundational components for various electronic systems, including power management circuits and sensors.
Officials noted that shortages of these specific chip types contributed to supply chain disruptions during the COVID-19 pandemic, affecting the automotive, industrial, and defense sectors. The new facilities aim to increase domestic production capacity for these foundational chips, thereby bolstering resilience against future economic disruptions. Texas Instruments is one of the few companies building high-volume 300-mm wafer capacity for these technologies in the United States.
The federal funding will be disbursed based on the completion of specific construction, technology, production, and commercial milestones. The CHIPS Program Office will monitor the performance of the award through financial and programmatic reports. Recipients of this funding must adhere to restrictions regarding stock buybacks and national security guardrails that limit the sharing of intellectual property.
