Texas Instruments is the newest buyer of CHIPS Act funds. 2022 Act, Signed by President Biden to increase domestic silicon production China will give TI a $1.6 billion grant in the face of increasing chip imports. The company will also receive $3 billion in loans and $6-8 billion in tax credits.
The effort is expected to create more than 2,000 U.S. manufacturing jobs at Texas Instruments’ new plants and “thousands of indirect jobs” for construction, suppliers and support industries. TI says it expects to receive another $10 million to fund workforce development.
TI’s grant money will go toward three chip factories under construction in Texas and Utah. The plants will produce 300 mm silicon wafer chips under the bill’s minimum $2 billion earmarked for legacy chips. The CHIPS Act focuses primarily on state-of-the-art silicon like these It is increasingly used for AI. TI’s production will shift toward less advanced processors for things like smartphones, home appliances, and national defense. It was GlobalFoundries received a $1.5 billion award for old silicon production in February. With the release of funds for TI on Friday, the government has now met its minimum quota for the old chips.
Bloomberg notes China has recently increased its investment in older chips, he said. In addition to creating US jobs, the CHIPS Act was designed to reduce China’s influence as silicon becomes an increasingly important global resource. Other buyers included Intel ($8.5 billion), TSMC ($6.6 billion) and Samsung ($6.4 billion).
Texas Instruments said it will spend about $40 billion in Utah and Texas, including two more factories in Sherman. However, they are not expected to be operational until after 2030. For the CHIPS Act, the Commerce Department prioritizes projects that can be completed by the end of the decade, leaving those delayed plants without federal funding.
The $280 billion CHIPS Act of 2022 passed the Senate by 64 votes and the House by 243 votes. The bill includes $39 billion in subsidies for domestic chip manufacturing, a 25 percent tax credit for manufacturing costs and $13 billion for workforce training.
After the bill passes in 2022, Biden he said it would “enhance our national security by making us less dependent on foreign sources of semiconductors.” He noted that it included “safeguards to ensure that companies receiving taxpayer dollars invest in America and that union workers build new manufacturing plants across the country.”
