In a move aimed at bolstering the US’ semiconductor manufacturing capabilities, Texas Instruments and the US Department of Commerce have signed a preliminary agreement outlining potential terms.
Why it matters: When the pandemic rolled through the global economy four years ago, it became clear to US officials that they had let its domestic semiconductor manufacturing capabilities deteriorate to dangerous levels. Hence the seeds of the CHIPS and Science Act were planted. The Act was allocated a total of $52.7 billion when it was signed into law in August 2022 and it has been doling out money out ever since. The latest recipient will likely be Texas Instruments, which has plans to use the funding to enhance its footprint in high-volume 300mm wafer capacity.
In a move aimed at bolstering the US’ semiconductor manufacturing capabilities, Texas Instruments and the US Department of Commerce have signed a preliminary agreement outlining potential terms for up to $1.6 billion in proposed direct funding under the CHIPS and Science Act.
This funding would support the construction of three 300mm wafer fabrication facilities in Texas and Utah. Alongside this, TI anticipates receiving an additional $6 billion to $8 billion from the US Department of Treasury’s Investment Tax Credit, designed to incentivize qualified US manufacturing investments.
