The Biden-Harris Administration has announced a preliminary memorandum of terms (PMT) with Texas Instruments (TI) to provide up to $1.6 billion in proposed funding under the CHIPS and Science Act. This initiative aims to enhance domestic supply chain resilience, advance national security, and boost U.S. competitiveness in semiconductor production.
The proposed funding supports TI's investment of over $18 billion by the end of the decade for constructing three new facilities—two in Texas and one in Utah. These projects are expected to create more than 2,000 manufacturing jobs and thousands of construction jobs.
"During the pandemic, shortages of current-generation and mature-node chips fueled inflation and made our country less safe," said U.S. Secretary of Commerce Gina Raimondo. "With this proposed investment from the Biden-Harris Administration in TI, we would help secure the supply chain for these foundational semiconductors that are used in every sector of the U.S. economy."
Assistant to the President for Science and Technology Arati Prabhakar highlighted the impact of semiconductor shortages during the pandemic: "Americans across the country felt the impact... With the CHIPS and Science Act, President Biden and Vice President Harris took action to strengthen our supply chains, create good-paying jobs, and advance U.S. competitiveness."
TI’s planned investment will significantly increase its domestic production capacity for foundational chips essential for various economic sectors.
"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.
Under Secretary of Commerce Laurie E. Locascio emphasized that increasing production capacity for critical chips is vital to U.S. economic and national security: "With our proposed investment... we would significantly advance our economic and national security."
The PMT includes $10 million dedicated workforce funding to develop TI’s semiconductor workforce through partnerships with educational institutions across the U.S., aiming at building future talent.
In addition to direct funding up to $1.6 billion, approximately $3 billion in loans may be available to TI under this agreement as part of a broader strategy involving $75 billion loan authority provided by CHIPS Act.
CHIPS for America aims at revitalizing American leadership in semiconductor manufacturing with significant private investments catalyzed by public funds since its inception over two years ago.
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