Texas Instruments (Texas)

Project Summary

The U.S. Department of Commerce awarded Texas Instruments (TI) up to $1.61 billion in direct funding under the CHIPS and Science Act to strengthen domestic supply chain resilience, advance our national security, and bolster U.S. competitiveness in current-generation and mature-node semiconductor production. The funding would support TI’s investment of more than $18 billion through the end of decade for the construction of three state-of-the-art fabrication facilities, including two in Texas and one in Utah. The projects are estimated to create more than 2,000 manufacturing jobs and over 20,000 construction jobs over time. 

Economic and National Security Impact

Headquartered in Dallas, TI is a global leading manufacturer of analog and embedded processing semiconductors. The company has played an important role in the U.S. economy for almost a century, creating the technological foundation for modern electronics through the invention of the first integrated circuit. Today, TI specializes in the production of current-generation and mature-node chips, also referred to as “foundational” chips, which are the building blocks for nearly all electronic systems, including power management integrated circuits, microcontrollers, amplifiers, sensors, and more. TI’s planned projects would meaningfully support the increasing needs for economic and national security applications – areas that TI has supported for decades.

Shortages of current-generation and mature-node chips were one of the driving factors of supply chain disruptions during the COVID-19 pandemic, impacting the U.S. automotive, industrial, and defense industries, and the availability of goods for Americans. TI’s more than $18 billion planned investment through the end of the decade across these three facilities would significantly increase its domestic production capacity of foundational chips, bolstering resilience against major economic disruptions. As one of the only companies building high-volume 300-mm wafer capacity for foundational technologies in the United States, this CHIPS investment would help support CHIPS for America’s Vision for Success by substantially increasing domestic manufacturing capabilities for mature-node chips.  

The CHIPS funding would be split across three projects in two locations:

• Sherman, Texas: Construction of two new, large-scale 300-mm fabrication facilities that are expected to produce 65nm – 130nm analog and embedded processing semiconductors, with anticipated production capacity of tens of millions chips every day. The Sherman site is one of the only greenfield production sites for current-generation and mature-node chips on 300-mm wafers in the U.S.
• Lehi, Utah: Construction of a new, large-scale 300-mm fabrication facility to produce 28nm – 65nm analog and embedded processing semiconductors, which is anticipated to produce tens of millions of chips every day. This project represents the largest economic investment in Utah’s history.

Financial and Commercial Terms

As stated in the CHIPS Notice of Funding Opportunity (NOFO) for Commercial Fabrication Facilities, CHIPS for America will disburse direct funding to the company for capital expenditures spent on the projects based on the completion of construction, technology, production, and commercial milestones. The CHIPS Program Office will track the performance of each CHIPS Incentives Award via financial and programmatic reports, in accordance with the award terms and conditions.

All CHIPS funding recipients are required to adhere to restrictions pursuant to the CHIPS Act and NOFO regarding stock buybacks and national security guardrails, which limit the sharing of intellectual property. The Department and TI have agreed to certain conditions on buybacks for a period of five years.

Workforce, Community, and Environmental Commitments

As part of our commitment to transparency, for information on the local and community impact of this project, please download our Community Impact Report.

Project Photos

Credit: Texas Instruments