Texas Instruments (TI) has entered into a preliminary agreement with the U.S. Department of Commerce to get up to $1.6 billion in funding under the CHIPS and Science Act. This, along with an anticipated up to $8 billion in investment tax credits, will support the expansion of fabs in Texas and Utah and enable them to produce chips on specialty 28nm – 130nm nodes. The expansions will create thousands of jobs and strengthen the U.S. chip supply chain.
The funding will specifically support the construction of three 300mm fabs. Two phases of TI's SM fab in Sherman, Texas, (a fab that will eventually include four phases) and one in Lehi, Utah. Under the terms of the deal, TI will use money from the U.S. government to equip the cleanroom of SM1 (SM fab, phase 1), construct shell for SM2, and re-equip the Lehi, Utah, fab which TI acquired from Micron with new tools. The Texas fabs will produce analog and embedded chips using specialty 28nm – 130nm process technologies, which are essential components in a wide range of electronic devices, from cars to medical equipment.
