Eyeing sustainable advancement in chip fabrication, Texas Instruments have secured $1.6 billion and $6-8 billion tax credit from the US government to build three wafer fabs in Texas and Utah.
US chip-seller Texas Instruments (TI) and the U.S. Department of Commerce have reached a non-binding preliminary memorandum of terms for a potential investment of up to $1.6 billion for three 300mm wafer fabrication facilities in Texas and Utah. This funding would be provided under the US CHIPS and Science Act.
The three new fabs, SM1 and SM2 in Sherman, Texas, and LFAB2 in Lehi, Utah, will concentrate on designing and constructing the SM1 cleanroom and setting up a pilot production line, building the LFAB2 cleanroom for initial manufacturing and the SM2 facility shell with the allocated funds.
As the company claimed, the fabs will benefit from shared infrastructure, personnel, technology, and a strong network of suppliers and local partners. TI plans to manufacture semiconductors with technology nodes ranging from 28nm to 130nm, which offer optimal cost, performance, and power efficiency for their processing products.
Furthermore, the facilities will operate solely on renewable energy and are focused on meeting LEED Gold standards, ensuring structural efficiency and sustainability. They also aim to reduce waste and improve water and energy efficiency per chip produced.
Additionally, the company anticipates receiving $6 billion to $8 billion from the US Department of Treasury’s Investment Tax Credit for qualifying manufacturing investments. This funding will help TI ensure a stable supply of critical analogue and embedded processing semiconductors, reducing geopolitical risks.
Texas Instruments revealed that the proposed direct funding from the CHIPS Act is intended to support its broader investment plan, which will exceed $18 billion through 2029.
