The Biden-Harris Administration has revealed that the U.S. Department of Commerce and Texas Instruments, a global manufacturer of analog and embedded processing semiconductors, have agreed on a potential $1.6 billion investment to boost semiconductor manufacturing in the country.
The Department of Commerce said Friday the two parties signed a non-binding preliminary memorandum of terms that will provide funds for the production of current-generation and mature-node chips. The investment aims to strengthen the domestic supply chain, create jobs and generate investments in the industries.
The $1.6 billion in proposed direct funding will be under the CHIPS and Science Act. The Biden-Harris Administration has long championed the act, which is a major part of Biden’s Investing in America agenda.
The project covers the construction of three facilities — two in Sherman, Texas and one in Lehi, Utah. TI plans to invest over $18 billion by the end of the decade in the facilities, which are expected to boost domestic manufacturing capabilities for mature-node chips and generate over 2,000 manufacturing jobs and thousands more construction jobs.
Director of the White House Office of Science and Technology Policy Arati Prabhakar, a previous Wash100 Award recipient, said, “Americans across the country felt the impact of semiconductor shortages during the pandemic—from car and appliance scarcities, to manufacturing lines halted and jobs lost. With the CHIPS and Science Act, President Biden and Vice President Harris took action to strengthen our supply chains, create good-paying jobs, and advance U.S. competitiveness.”
The Assistant to the President for Science and Technology added, “Texas Instruments is a global leader in foundational chip manufacturing, and thanks to the leadership of President Biden and Vice President Harris, TI is investing in our future here at home.”
U.S. Secretary of Commerce Gina Raimondo pointed out that shortages of current-generation and mature-node chips during the pandemic resulted in a skyrocketing inflation rate and national security issues.
“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.”
Haviv Ilan, president and CEO of Texas Instruments, praised the CHIPS Act for enabling more companies to help strengthen the semiconductor ecosystem.
“Our investments further strengthen our competitive advantage in manufacturing and technology as we expand our 300mm manufacturing operations in the U.S.,” Ilan said, adding, “With plans to grow our internal manufacturing to more than 95% by 2030, we’re building geopolitically dependable, 300mm capacity at scale to provide the analog and embedded processing chips our customers will need for years to come.”
