Texas Instruments (TI) has announced that it is the recipient of up to $1.6 billion in funding from the U.S. Department of Commerce under the CHIPS Act. The funding will support three new 300mm semiconductor wafer fabs currently under construction in Sherman, Texas, and Lehi, Utah. The announcement follows the preliminary memorandum of terms announced in August 2024 and will include disbursement of funds tied to the achievement of key project milestones through 2029.
Key Investments in Texas and Utah

The CHIPS Act funding will support critical construction and manufacturing projects at TI’s facilities, including:
- Sherman, Texas: Construction of a cleanroom and tool installations at SM1 and the shell construction of SM2, TI’s first and second fabs at this location.
- Lehi, Utah: Construction of a cleanroom and tool installations at LFAB2, TI’s second fab at this site.
When completed, the facilities will produce tens of millions of analog and embedded processing chips daily, serving key industries such as automotive, industrial, personal electronics, communications equipment, and enterprise systems. The projects are expected to create 2,000 direct jobs and thousands of indirect roles, including an estimated 1,700 construction jobs.
Workforce Development and Sustainability Initiatives
In addition to CHIPS Act funding, TI anticipates receiving $6 billion to $8 billion in tax credits from the U.S. Treasury Department’s Advanced Manufacturing Investment Credit (AMIC). TI will also receive up to $10 million under the CHIPS Act for workforce development efforts in Texas and Utah, which aim to build the talent pipeline required to support its expanded manufacturing operations.
TI’s new fabs will align with its commitment to responsible manufacturing practices. These facilities will operate entirely on renewable electricity, with a goal of achieving a 70% water reuse rate. All new fabs are designed to meet LEED Gold standards, supporting TI’s sustainability objectives.
Strengthening U.S. Semiconductor Ecosystem Resilience
“As the largest analog and embedded processing semiconductor manufacturer in the U.S., TI is uniquely positioned to provide dependable, low-cost 300mm semiconductor manufacturing capacity at scale,” said Haviv Ilan, president and CEO of Texas Instruments. “The increasing number of electronic devices in our lives depend on our foundational chips, and we appreciate the support from the U.S. government to make the semiconductor ecosystem stronger and more resilient.”
These investments in Texas and Utah further TI’s mission to build a robust and geopolitically dependable supply chain for semiconductor technologies, reinforcing the United States’ position as a leader in semiconductor manufacturing.
About Texas Instruments
Texas Instruments Incorporated (Nasdaq: TXN) is a global semiconductor company specializing in analog and embedded processing chips for industrial, automotive, personal electronics, communications equipment, and enterprise systems. With a mission to make electronics more reliable, affordable, and energy-efficient, TI continues to innovate for a better world. Learn more at TI.com.
About CHIPS for America
CHIPS for America, part of the U.S. Department of Commerce, supports U.S. semiconductor manufacturing and research and development to drive innovation, economic growth, and job creation. To date, the program has allocated over $25 billion of its $36 billion in incentives funding, spanning 21 states and expected to create more than 125,000 jobs.
Since its inception, semiconductor and electronics companies have announced over $450 billion in private investments, catalyzed in large part by public funding. CHIPS for America includes both the CHIPS Program Office for manufacturing incentives and the CHIPS Research and Development Office, focused on R&D programs. For more information, visit CHIPS for America.
Source/Photo Credit: Texas Instruments
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