Texas Instruments reports that they have signed a non-binding Preliminary Memorandum of Terms with the U.S. Department of Commerce for up to $1.6 billion in proposed direct funding under the CHIPS and Science Act aimed at supporting three 300mm wafer fabs already under construction in Texas and Utah.
Additionally, TI anticipates receiving an estimated $6 billion to $8 billion from the U.S. Department of Treasury’s Investment Tax Credit intended for qualified U.S.-based manufacturing investments.
The company reports that this combination of direct funding coupled with investment tax credits would assist them in providing a reliable supply chain of essential analog and embedded processing semiconductors.
Building geopolitically dependable capacity is crucial as these chips are integral components across various electronic devices including advanced automotive safety systems, medical equipment, smart appliances among others.
The reported direct funding under the CHIPS Act aims at supporting more than an estimated total investment exceeding $18 billion by 2029 which forms part of their broader commitment towards enhancing their manufacturing capabilities:
+ Constructing SM1 cleanroom alongside completing pilot line production
+ Building LFAB2 cleanroom readying it towards initial production stages
+ Developing structural shell framework around SM2
These connected, multi-fab sites benefit from shared infrastructure, talent and technology sharing, and a strong network of suppliers and community partners. They will produce semiconductors in 28nm to 130nm technology nodes, which provide the optimal cost, performance, power, precision and voltage levels required for TI’s broad portfolio of analog and embedded processing products.
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