NEWS HIGHLIGHTS:
- The U.S. Department of Commerce has awarded TI up to
$1.6 billion in CHIPS Act funding to
support three new 300mm semiconductor wafer fabs under construction
in Texas and Utah.
- TI also expects to receive an estimated $6 billion to $8
billion from the U.S. Department of the Treasury's
Investment Tax Credit for qualified U.S. manufacturing
investments.
- The company will also receive up to $10
million to support workforce development.
LEHI,
Utah and SHERMAN,
Texas, Dec. 20, 2024 /PRNewswire/ -- Texas
Instruments (TI) (Nasdaq: TXN) and the U.S. Department of Commerce
today 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. 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.
"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, supporting:
- 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.
Combined, TI's three new fabs in Texas and Utah will create 2,000 company jobs, along
with thousands of indirect jobs for construction, suppliers and
supporting industries. TI is also investing in building its future
workforce. As part of the CHIPS Act award agreement, TI will also
receive up to $10 million for
workplace development efforts in Texas and Utah.
Consistent with TI's longstanding commitment to responsible,
sustainable manufacturing and environmental stewardship, the
company's 300mm wafer fabs will be entirely powered by renewable
electricity. Additionally, TI is committed to reducing overall
water consumption across its operations, endeavoring to achieve a
70% water reuse capability in Sherman,
Texas, and Lehi,
Utah. All of TI's new 300mm fabs are also designed to meet
LEED Gold standards for structural efficiency and
sustainability.
Learn more:
- TI CHIPS Act press kit (includes images, video b-roll, fact
sheet)
- TI Sherman, Texas, press
kit
- TI Lehi, Utah, press kit
Notice regarding forward-looking statements
This release includes forward-looking statements intended to
qualify for the safe harbor from liability established by the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements generally can be identified by phrases
such as TI or its management "believes," "expects," "anticipates,"
"foresees," "forecasts," "estimates" or other words or phrases of
similar import. Similarly, statements herein that describe TI's
business strategy, outlook, objectives, plans, intentions or goals
also are forward-looking statements. All such forward-looking
statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from those in
forward-looking statements.
See Item 1A of TI's most recent Form 10-K for a detailed
discussion of risk factors that could cause results to differ
materially from the forward-looking statements. The forward-looking
statements included in this release are made only as of the date of
this release, and we undertake no obligation to update the
forward-looking statements to reflect subsequent events or
circumstances. If we do update any forward-looking statement, you
should not infer that we will make additional updates with respect
to that statement or any other forward-looking statement.
About Texas Instruments
Texas Instruments Incorporated (Nasdaq: TXN) is a global
semiconductor company that designs, manufactures, and sells analog
and embedded processing chips for markets such as industrial,
automotive, personal electronics, communications equipment and
enterprise systems. At our core, we have a passion to create a
better world by making electronics more affordable through
semiconductors. This passion is alive today as each generation of
innovation builds upon the last to make our technology more
reliable, more affordable and lower power, making it possible for
semiconductors to go into electronics everywhere. Learn more
at TI.com.
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SOURCE Texas Instruments
