Dallas-based Texas Instruments is receiving $1.6 billion from the federal government to fund new semiconductor manufacturing facilities in Texas and Utah.

Texas Instruments, a semiconductor multinational that produces chips for industrial, automotive, and personal electronics uses — among others — had announced a new 300-millimeter semiconductor wafer (a material used in electronics to conduct electricity) fabrication plant in Lehi next to an existing similar facility, a $11 billion investment, according to a news release from the company.

The U.S. Department of Commerce approved the funds through its CHIPS and Science Act for that new plant and two others in Sherman, Texas. Apart from that direct funding, Texas Instruments is expected to receive $6 billion to $8 billion from the U.S. Department of Treasury’s Investment Tax and $10 million in proposed funding for workforce development.

The investment, said president and CEO of Texas Instruments Haviv Ilan, makes the country’s semiconductor ecosystem more resilient.

“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,” Ilan said in the release.

Sen. Mitt Romney, R-Utah, who sponsored legislation that paved the way for the CHIPS and Science Act, applauded the agreement, arguing it would enhance Utah’s role in national defense and economic success.

“In order to compete with China on the world stage, we must continue to promote innovation, foster scientific talent, and expand research here at home,” Romney said in a release. “Texas Instruments’ expanded operations will strengthen the United States’ manufacturing capabilities to help break our country’s dependence on China for microchips.”

Utah Gov. Spencer Cox also praised the project, part of Silicon Slopes, the moniker for Utah’s tech and start-up community primarily located in Utah County..

“This investment in semiconductor manufacturing not only creates more jobs, but also brings supply chains back to the United States,” Cox said in a statement.

Texas Instruments estimates that the Lehi expansion will create 800 jobs and thousands of indirect jobs.

“The new (fabrication facility) will manufacture tens of millions of analog and embedded processing chips daily that will go into electronics everywhere,” a 2023 news release announcing the expansion reads.

The facility is under construction and is expected to start production in 2026.

Utah News Dispatch is part of States Newsroom, the nation’s largest state-focused nonprofit news organization.

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