Texas Instruments Secures $1.6 Billion in CHIPS Act Funding for Semiconductor Expansion

Texas Instruments

The U.S. Department of Commerce has awarded $1.6 billion to Texas Instruments under the CHIPS and Science Act, supporting the construction of two semiconductor fabrication plants in Sherman, Texas, and one in Lehi, Utah. This funding is part of the U.S. government’s push to strengthen domestic semiconductor production and reduce reliance on foreign supply chains.

Texas Instruments is currently building three large-scale 300mm wafer fabrication facilities, all of which are set to operate using 100% renewable electricity by 2027. The Sherman facilities are expected to commence operations in 2025, while the Utah facility is scheduled to begin production in 2026.

Additional Federal Incentives Expected

Beyond the CHIPS Act funding, Texas Instruments anticipates an additional $6 billion to $8 billion in funding from the U.S. Treasury Department's Investment Tax Credit, which supports manufacturing investments under the federal initiative.

These investments align with the Biden administration’s semiconductor strategy, aiming to enhance domestic chip production, support clean energy initiatives, and boost national security in the semiconductor supply chain.