Texas Instruments is set to receive up to $1.6 billion in funding from the CHIPS and Science Act to support the construction of three new semiconductor plants in Texas and Utah, the company announced Friday.
The funding will go toward building two new fabrication plants in Sherman, Texas, and a third in Lehi, Utah.
“The historic CHIPS Act is enabling more semiconductor manufacturing capacity in the U.S., making the semiconductor ecosystem stronger and more resilient,” Haviv Ilan, president and CEO of Texas Instruments, said in a statement.
The company also expects to receive between $6 billion and $8 billion in Treasury Department tax credits for qualified U.S. manufacturing investments and $10 million in funding for workforce development, it said.
The three new plants are expected to create more than 2,000 manufacturing jobs, in addition to thousands of construction jobs, according to a Department of Commerce press release.
“During the pandemic, shortages of current-generation and mature-node chips fueled inflation and made our country less safe,” Commerce Secretary Gina Raimondo said in a statement.
“With this proposed investment from the Biden-Harris Administration in TI, a global leader of production for current-generation and mature-node chips, we would help secure the supply chain for these foundational semiconductors that are used in every sector of the U.S. economy, and create thousands of jobs in Texas and Utah,” she added.
The Biden administration has allocated more than $31 billion in CHIPS funding so far to companies, such as Intel, Taiwan Semiconductor Manufacturing Company and Samsung, to build out their semiconductor manufacturing in the U.S.
The CHIPS and Science Act, which was passed in August 2022, provided nearly $53 billion to boost domestic chip production, with $39 billion set aside for manufacturing incentives.
