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Texas Instruments (TXN.US) received $1.6 billion in aid to build three fabs

AInvestFriday, Aug 16, 2024 8:50 am ET
1min read

Texas Instruments (TXN.US) said it signed a non-binding memorandum of understanding with the U.S. Commerce Department to secure up to $1.6 billion in proposed direct funding to support three 300mm fabs under construction in Texas and Utah.

The company said the non-binding memo was signed to obtain funding under the Semiconductor and Science Act.

Texas Instruments is expected to receive $6 billion to $8 billion in subsidies from the U.S. Treasury’s Qualified Manufacturing Investment Tax Credit.

Haviv Ilan, president and CEO of Texas Instruments, said: “We plan to raise our internal manufacturing rate to over 95% by 2030, and we are building large, geographically secure 300mm capacity to provide the needed analog and embedded processing IP for our customers over the next few years.”

Texas Instruments said the funding would help it invest more than $18 billion by 2029, part of a broader investment in manufacturing.

The company said the funding would support three new fabs, two in Sherman, Texas (SM1 and SM2) and one in Lehi, Utah (LFAB2).

Texas Instruments added it also expects to receive $100 million in workforce development funding as it creates more than 2,000 new jobs at its three new fabs and thousands of indirect jobs in the construction, supply chain and support industries.

The company also said its fabs would be powered entirely by renewable energy.

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