Texas Instruments Reels in $4.6 Billion in Chips Act Grants, Loans

By Colin Kellaher

The U.S. government is awarding Texas Instruments up to $4.6 billion in grants and loans to help fund the construction of three new semiconductor manufacturing plants in Texas and Utah.

Texas Instruments on Friday said it has signed a non-binding, preliminary memorandum of terms with the Commerce Department for up to $1.6 billion in direct funding under the Chips Act, a nearly $53 billion government effort passed in 2022 to jump-start domestic semiconductor production.

The Commerce Department said it will also make up to $3 billion in loans available to Texas Instruments to help fund the 300-millimeter wafer fabs, which already under construction in Sherman, Texas, and Lehi, Utah.

Texas Instruments said the proposed funding, coupled with an expected $6 billion to $8 billion investment tax credit from the Treasury Department, will help the Dallas company provide a geopolitically dependable supply of essential analog and embedded processing semiconductors.

The company said the proposed Chips Act funding would support its own investment of more than $18 billion through 2029 in the three new wafer fabs, which will create more than 2,000 jobs.

The Chips Act is forecast to triple the number of silicon chips made in the U.S. by 2032 and boost the U.S. share of global chip production to about 14% in 2032 from 12% in 2020, according to a Boston Consulting Group study commissioned by the Semiconductor Industry Association.

--Asa Fitch contributed to this article.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

August 16, 2024 06:32 ET (10:32 GMT)

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