Texas Instruments signs preliminary agreement to receive up to $1.6 billion in CHIPS and Science Act proposed funding for semiconductor manufacturing in Texas and Utah | TXN Stock News

Nov 08, 2024

Texas Instruments (TI) has signed a preliminary agreement with the U.S. Department of Commerce for up to $1.6 billion in proposed direct funding under the CHIPS and Science Act. This funding will support three 300mm semiconductor wafer fabs under construction in Texas and Utah. Additionally, TI expects to receive an estimated $6 billion to $8 billion from the U.S. Department of Treasury's Investment Tax Credit for qualified U.S. manufacturing investments.

The company plans to invest more than $18 billion through 2029 as part of its broader manufacturing investment. This will create over 2,000 new TI jobs and thousands of indirect jobs. The new fabs will produce semiconductors in 28nm to 130nm technology nodes, important for TI's analog and embedded processing products.

Texas Instruments (TI) ha firmato un accordo preliminare con il Dipartimento del Commercio degli Stati Uniti per un massimo di 1,6 miliardi di dollari di finanziamenti diretti proposti ai sensi del CHIPS and Science Act. Questo finanziamento supporterà tre fabbriche di wafer per semiconduttori da 300 mm in fase di costruzione in Texas e Utah. Inoltre, TI prevede di ricevere un importo stimato di da 6 a 8 miliardi di dollari dal Credito d'Imposta per Investimenti del Dipartimento del Tesoro degli Stati Uniti per investimenti qualificati nella produzione negli Stati Uniti.

L'azienda prevede di investire più di 18 miliardi di dollari entro il 2029 come parte del suo piano di investimento più ampio nella produzione. Questo creerà oltre 2.000 nuovi posti di lavoro in TI e migliaia di posti di lavoro indiretti. Le nuove fabbriche produrranno semiconduttori con tecnologie nei nodi 28nm a 130nm, fondamentali per i prodotti di elaborazione analogica e incorporata di TI.

Texas Instruments (TI) ha firmado un acuerdo preliminar con el Departamento de Comercio de EE. UU. para hasta 1.6 mil millones de dólares en financiación directa propuesta bajo la Ley CHIPS y Ciencia. Este financiamiento apoyará tres fábricas de obleas de semiconductores de 300 mm en construcción en Texas y Utah. Además, TI espera recibir entre 6 mil millones y 8 mil millones de dólares del Crédito Fiscal por Inversión del Departamento del Tesoro de EE. UU. para inversiones de fabricación calificadas en EE. UU.

La compañía planea invertir más de 18 mil millones de dólares hasta 2029 como parte de su inversión más amplia en fabricación. Esto creará más de 2,000 nuevos empleos en TI y miles de empleos indirectos. Las nuevas fábricas producirán semiconductores en nodos tecnológicos de 28nm a 130nm, importantes para los productos de procesamiento analógico y embebido de TI.

텍사스 인스트루먼트(TI)가 미국 상무부와 16억 달러까지의 직접 자금 지원 제안에 대한 예비 협정을 체결했습니다. 이 자금은 텍사스와 유타에 건설 중인 300mm 반도체 웨이퍼 팹 3곳을 지원할 것입니다. 또한 TI는 미국 재무부의 투자세액공제로부터 60억에서 80억 달러를 받을 것을 예상하고 있습니다.

회사는 2029년까지 180억 달러 이상을 투자할 계획입니다. 이는 TI에서 2,000개 이상의 신규 일자리와 수천 개의 간접 일자리를 창출할 것입니다. 새로운 팹은 TI의 아날로그 및 임베디드 프로세싱 제품에 중요한 28nm에서 130nm 기술 노드의 반도체를 생산할 것입니다.

Texas Instruments (TI) a signé un accord préliminaire avec le Département du Commerce des États-Unis pour jusqu'à 1,6 milliard de dollars de financement direct proposé dans le cadre de la loi CHIPS et Science. Ce financement soutiendra trois usines de wafers de semi-conducteurs de 300 mm en construction au Texas et en Utah. De plus, TI s'attend à recevoir une estimation de 6 à 8 milliards de dollars du crédit d'impôt à l'investissement du Département du Trésor des États-Unis pour les investissements de fabrication qualifiés.

L'entreprise prévoit d'investir plus de 18 milliards de dollars d'ici 2029 dans le cadre de son investissement plus large dans la fabrication. Cela créera plus de 2 000 nouveaux emplois chez TI et des milliers d'emplois indirects. Les nouvelles usines produiront des semi-conducteurs dans des technologies de nœud de 28 nm à 130 nm, ce qui est important pour les produits de traitement analogique et embarqué de TI.

Texas Instruments (TI) hat eine vorläufige Vereinbarung mit dem US-Handelsministerium über bis zu 1,6 Milliarden Dollar an vorgeschlagenen direkten Förderungen unter dem CHIPS and Science Act unterzeichnet. Diese Finanzierung wird drei 300-mm-Halbleiter-Wafer-Fabriken unterstützen, die in Texas und Utah im Bau sind. Darüber hinaus erwartet TI, geschätzte 6 bis 8 Milliarden Dollar durch den Investitionssteuergutschrift des US-Finanzministeriums für qualifizierte Herstellungsinvestitionen zu erhalten.

Das Unternehmen plant, bis 2029 mehr als 18 Milliarden Dollar zu investieren, als Teil seiner umfassenderen Investition in die Fertigung. Dies wird über 2.000 neue Arbeitsplätze bei TI und Tausende von indirekten Arbeitsplätzen schaffen. Die neuen Fabriken werden Halbleiter in 28nm bis 130nm Technologie-Nodes produzieren, was für TIs analoge und eingebettete Verarbeitungsprodukte wichtig ist.

Texas Instruments (TI) securing up to $1.6 billion in CHIPS Act funding and an estimated $6-8 billion in tax credits is a significant boost for the company's manufacturing expansion plans. This substantial government support will help TI strengthen its competitive position in the semiconductor industry.

The investment in three new 300mm wafer fabs will increase TI's production capacity and potentially lead to improved economies of scale. This could positively impact TI's profit margins in the long term. The focus on 28nm to 130nm technology nodes aligns with TI's strength in analog and embedded processing chips, which are important for various industries.

Investors should note that this expansion will require significant capital expenditure from TI, with over $18 billion planned through 2029. While this may impact short-term cash flows, it positions the company for long-term growth and increased market share in the essential semiconductor market.

TI's investment in expanding its 300mm wafer fab capacity is a strategic move to capitalize on the growing demand for analog and embedded processing chips. These components are critical in various applications, from automotive to industrial and consumer electronics.

The company's plan to increase internal manufacturing to over 95% by 2030 is noteworthy. This vertical integration strategy could provide TI with greater control over its supply chain and potentially lead to improved product quality and faster time-to-market.

The focus on geopolitically dependable capacity is timely, given the ongoing global semiconductor supply chain challenges. This expansion could position TI as a more reliable supplier to U.S.-based customers, potentially leading to increased market share and stronger customer relationships in the long run.

TI's commitment to powering its new 300mm wafer fabs entirely with renewable electricity is a significant step towards sustainability. This aligns with growing investor and consumer focus on environmental responsibility and could enhance TI's reputation.

The design of new fabs to meet LEED Gold standards demonstrates a holistic approach to sustainability, addressing energy efficiency, water conservation and waste reduction. This could lead to long-term cost savings and operational efficiencies.

TI's focus on producing semiconductors that enable more efficient and environmentally friendly technologies positions the company well in the growing market for green tech solutions. This could open up new revenue streams and market opportunities as industries increasingly prioritize sustainability and energy efficiency in their products.

NEWS HIGHLIGHTS:

LEHI, Utah, and SHERMAN, Texas, Aug. 16, 2024 /PRNewswire/ -- Texas Instruments (TI) (Nasdaq: TXN) and the U.S. Department of Commerce have signed a non-binding Preliminary Memorandum of Terms for up to $1.6 billion in proposed direct funding under the CHIPS and Science Act to support three 300mm wafer fabs already under construction in Texas and Utah. In addition, TI expects to receive an estimated $6 billion to $8 billion from the U.S. Department of Treasury's Investment Tax Credit for qualified U.S. manufacturing investments. The proposed direct funding, coupled with the investment tax credit, would help TI provide a geopolitically dependable supply of essential analog and embedded processing semiconductors.

"The historic CHIPS Act is enabling more semiconductor manufacturing capacity in the U.S., making the semiconductor ecosystem stronger and more resilient," said Haviv Ilan, president and CEO of Texas Instruments. "Our investments further strengthen our competitive advantage in manufacturing and technology as we expand our 300mm manufacturing operations in the U.S. 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."

Building geopolitically dependable capacity for analog and embedded processing chips

Since its founding more than 90 years ago, TI has been advancing technology, pioneering the transition from vacuum tubes to transistors and then to integrated circuits. Today, TI is the largest U.S. analog and embedded processing semiconductor manufacturer. TI chips are essential in nearly every type of electronic device, from cars with advanced safety and intelligence systems to life-saving medical equipment and smart appliances that make homes safer and more efficient.

The proposed direct funding under the CHIPS Act would support TI's investment of more than $18 billion through 2029, which is part of the company's broader investment in manufacturing. This proposed direct funding will support three new wafer fabs, two in Sherman, Texas, (SM1 and SM2) and one in Lehi, Utah (LFAB2), specifically to:

These connected, multi-fab sites benefit from shared infrastructure, talent and technology sharing, and a strong network of suppliers and community partners. They will produce semiconductors in 28nm to 130nm technology nodes, which provide the optimal cost, performance, power, precision and voltage levels required for TI's broad portfolio of analog and embedded processing products.

"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 tens of thousands of jobs in Texas and Utah," said U.S. Secretary of Commerce Gina Raimondo. "The CHIPS for America program will supercharge American technology and innovation and make our country more secure – and TI is expected to be an important part of the success of the Biden-Harris Administration's work to revitalize semiconductor manufacturing and development in the U.S."

Building a stronger workforce

With a long history of supporting its employees to build long-term, successful careers, TI is also investing in building its future workforce. TI will create more than 2,000 company jobs across its three new fabs in Texas and Utah, along with thousands of indirect jobs for construction, suppliers and supporting industries.

"We are proud to work with Texas Instruments as they build new semiconductor fabs in Sherman and solidify Texas as the best state for semiconductors. Texas Instruments invented the microchip in Texas, and we are honored to be home to TI's semiconductor manufacturing facilities in Dallas, Richardson and Sherman," said Texas Gov. Greg Abbott. "With this latest project, TI is building on its more than 90-year legacy in Texas and adding thousands of good-paying jobs for Texans to manufacture critically important technology."

"By investing in semiconductor manufacturing, we are helping secure this vulnerable supply chain, boosting our national security and global competitiveness, and creating new jobs for Texans," said U.S. Sen. John Cornyn. "The chipmaking capabilities these resources will enable at Texas Instruments will help the U.S. reclaim its leadership role in the critically important semiconductor industry, and I look forward to seeing more Texas-led advancements in the years to come."

In order to build a future-ready workforce, TI is enhancing the skills of current employees, expanding internships and creating pipeline programs with a focus on building electronic and mechanical skills. TI has robust engagements with 40 community colleges, high schools and military institutions across the U.S. to develop future semiconductor talent.

"Utah is thrilled that Texas Instruments is expanding its manufacturing presence in the Silicon Slopes, furthering the impact Utahns have on critical semiconductor technology," said Utah Gov. Spencer Cox. "This investment in semiconductor manufacturing not only creates more jobs, but also brings supply chains back to the United States."

"This proposed CHIPS funding will further support Texas Instruments' investment in its new semiconductor fab in Lehi —and enhance Utah's vital role in our national defense and economic success," said U.S. Senator Mitt Romney. "I was an original sponsor of the CHIPS and Science Act—which made today's announcement possible—because in order to compete on the world stage, we must continue to promote innovation, foster scientific talent, and expand research here at home. Texas Instruments' expanded operations will help make the United States more self-reliant for chips essential to our national security and economy."

Building sustainable manufacturing

TI has a long-standing commitment to responsible, sustainable manufacturing and environmental stewardship. As part of this commitment, TI continually invests in its fabrication processes and equipment to reduce energy, material and water consumption, and greenhouse gas (GHG) emissions.

The company's 300mm wafer fabs will be entirely powered by renewable electricity. Additionally, all of TI's new 300mm fabs are designed to meet LEED Gold standards for structural efficiency and sustainability. TI's 300mm manufacturing facilities bring advantages in reducing waste and improving water and energy consumption per chip.

TI semiconductors are and will increasingly play a critical role in helping reduce the impact on the environment, helping customers create smaller, more efficient and cost-effective technology solutions that in turn drive continued innovation in electrification and the expanded usage of renewable energy.

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Notice regarding forward-looking statements

This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as TI or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements herein that describe TI's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements.

See Item 1A of TI's most recent Form 10-K for a detailed discussion of risk factors that could cause results to differ materially from the forward-looking statements. The forward-looking statements included in this release are made only as of the date of this release, and we undertake no obligation to update the forward-looking statements to reflect subsequent events or circumstances. If we do update any forward-looking statement, you should not infer that we will make additional updates with respect to that statement or any other forward-looking statement.

About Texas Instruments

Texas Instruments Incorporated (Nasdaq: TXN) is a global semiconductor company that designs, manufactures, and sells analog and embedded processing chips for markets such as industrial, automotive, personal electronics, communications equipment and enterprise systems. At our core, we have a passion to create a better world by making electronics more affordable through semiconductors. This passion is alive today as each generation of innovation builds upon the last to make our technology more reliable, more affordable and lower power, making it possible for semiconductors to go into electronics everywhere. Learn more at -1%26h%3D2361819976%26u%3Dhttps%253A%252F%252Fc212.net%252Fc%252Flink%252F%253Ft%253D0%2526l%253Den%2526o%253D2849181-1%2526h%253D2359332189%2526u%253Dhttp%25253A%25252F%25252Fwww.ti.com%25252F%2526a%253DTI.com%26a%3DTI.com&a=TI.com" target="_blank">TI.com.

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