Texas Instruments signs agreement to receive up to $1.6bn in proposed funding

In addition, Texas Instruments (TI) expects to receive an estimated $6bn to $8bn from the US Department of Treasury's Investment Tax Credit for qualified US manufacturing investments.

"The historic CHIPS Act is enabling more semiconductor manufacturing capacity in the US, making the semiconductor ecosystem stronger and more resilient," Haviv Ilan, president and CEO of Texas Instruments said in a statement. "Our investments further strengthen our competitive advantage in manufacturing and technology as we expand our 300mm manufacturing operations in the US. With plans to grow our internal manufacturing to more than 95 per cent by 2030, we're building geopolitically dependable, 300mm capacity at scale to provide the analogue and embedded processing chips our customers will need for years to come."

The proposed direct funding under the CHIPS Act would support TI's investment of more than $18bn through to 2029, which is part of the company's broader investment in manufacturing.

This proposed direct funding will support two new wafer fabs in Sherman, Texas, (SM1 and SM2) and one in Lehi, Utah (LFAB2). Powered by renewable electricity, they will produce semiconductors in 28nm to 130nm technology nodes.