LEHI, Utah and SHERMAN, Texas — Texas Instruments (TI) and the U.S. Department of Commerce announced an award agreement of up to $1.6 billion in direct funding through the U.S. CHIPS and Science Act, following the preliminary memorandum of terms announced in August 2024.
According to a news release, the funding will help support three of TI’s new 300mm wafer fabs currently under construction in Texas and Utah. Support from the CHIPS Act, including the 25% investment tax credit, will help TI provide a geopolitically dependable supply of essential analog and embedded processing semiconductors, the release said.
“As the largest analog and embedded processing semiconductor manufacturer in the U.S., TI is uniquely positioned to provide dependable, low-cost 300mm semiconductor manufacturing capacity at scale,” said Haviv Ilan, president and CEO of Texas Instruments. “The increasing number of electronic devices in our lives depend on our foundational chips, and we appreciate the support from the U.S. government to make the semiconductor ecosystem stronger and more resilient.”
The CHIPS Act direct funding will support TI’s investments through 2029 for three large-scale 300mm wafer fabs in Sherman, Texas (SM1 and SM2), and Lehi, Utah (LFAB2). Together, these fabs will manufacture tens of millions of analog and embedded processing chips every day that are critical to a variety of end markets, including automotive, industrial, personal electronics, communications equipment and enterprise systems.
Specifically, the CHIPS Act direct funding will be distributed upon completion of project milestones for:
- Cleanroom construction and tool installations at SM1 in Sherman, Texas;
- Shell construction of SM2, a second fab in Sherman, Texas; and
- Cleanroom construction and tool installations at LFAB2, a second fab in Lehi, Utah.
These connected, multi-fab sites in Texas and Utah will benefit from shared infrastructure, talent and technology sharing, and a strong network of existing suppliers and community partners.
Source: Texas Instruments
