The U.S. Department of Commerce on December 20, 2024, awarded Texas Instruments (TI) up to $1.6 billion in CHIPS Act direct funding to support construction of three new 300mm semiconductor wafer fabrication plants in Sherman, Texas, and Lehi, Utah. The Sherman facilities, designated SM1 and SM2, and the Lehi facility, designated LFAB2, are already under construction. A preliminary memorandum of terms had been announced in August 2024. The three fabs are projected to create 2,000 company jobs, along with thousands of additional indirect jobs in construction, supply, and supporting industries.
What it means
The award finalizes federal support for TI’s three-fab buildout, with funding tied to completion of project milestones and covering investments through 2029. SM1 and LFAB2 funding applies to cleanroom construction and tool installations; SM2 funding covers shell construction. When operational, the three facilities will manufacture analog and embedded processing chips at a combined volume of tens of millions of units per day, according to the company. TI also said it expects to receive an estimated $6 billion to $8 billion through the U.S. Department of the Treasury’s Investment Tax Credit, separate from the direct CHIPS Act award.
All three fabs are designed to meet LEED Gold standards and will run entirely on renewable electricity. TI has set a target of 70% water reuse capability at both the Sherman, Texas, and Lehi, Utah, sites. “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.
Key facts
- Up to $1.6 billion in CHIPS Act direct funding awarded by the U.S. Department of Commerce
- Fabs: SM1 and SM2 in Sherman, Texas; LFAB2 in Lehi, Utah — all 300mm wafer facilities
- 2,000 company jobs to be created across the three fabs, according to the company
- Funding supports investments through 2029, distributed upon completion of project milestones
- Estimated $6 billion to $8 billion in Investment Tax Credits expected from the U.S. Department of the Treasury, according to the company
- Up to $10 million in CHIPS Act funding allocated for workforce development
- 70% water reuse target at Sherman, Texas, and Lehi, Utah, sites
- All three fabs designed to LEED Gold standards and powered by renewable electricity
Source: Texas Instruments news release (PRNewswire), co-issued with the U.S. Department of Commerce