Source: Reuters, AFP.com
The U.S. Commerce Department has signed a preliminary agreement with semiconductor manufacturer Texas Instruments for up to $1.6 billion to construct three new facilities. This is the latest government outlay aimed at bolstering domestic chip production.
Texas Instruments specializes in making chips, which go into nearly all electronic systems, from smartphones to cars. Under the U.S. CHIPS and Science Act, the funding will help the company build two Texas and one Utah factories. Texas Instruments has pledged more than $18 billion through 2029 to the projects, which are expected to create 2,000 manufacturing jobs.
The chipmaker also expects to receive about $6 billion to $8 billion in investment tax credit from the U.S. Treasury Department and $10 million in funding for workforce development. CEO Haviv Ilan said, “With plans to grow our internal manufacturing to more than 95% by 2030, we’re building geopolitically dependable, 300mm capacity at scale to provide the analog and embedded processing chips our customers will need for years to come,”.
The United States, through the CHIPS Act, is trying to boost domestic output and reduce reliance on semiconductor hub Taiwan for older-generation semiconductors amid national security concerns and as competition with Beijing intensifies.
The U.S. government awarded nearly $20 billion in grants and loans to Intel (INTC.O) and $6.1 billion in grants to memory chipmaker Micron Technology.
