(Reuters) - Texas Instruments will receive as much as $1.6 billion in direct funding from the U.S. Commerce Department to support the construction of three new domestic facilities, the analog chipmaker said on Friday.
The funding, under the CHIPS and Science Act, will help the company build two factories in Texas and one in Utah. Texas Instruments has pledged $18 billion in investment through 2029 to the projects, which are expected to create 2,000 manufacturing jobs.
Texas Instruments said it also expects to receive about $6 billion to $8 billion in investment tax credit from the U.S. Treasury Department, and another $10 million in funding for workforce development.
"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," CEO Haviv Ilan said.
The United States is pushing for increased domestic semiconductor production through the U.S. CHIPS Act, which was passed in 2022 and can provide $52.7 billion in funding, including $39 billion in subsidies for semiconductor production and $11 billion for R&D.
The Biden Administration has awarded Intel nearly $20 billion in grants and loans, and $6.1 billion in grants to memory chipmaker Micron Technology this year under the CHIPS Act.
"With this proposed investment from the Biden-Harris Administration in TI (Texas Instruments) ... we would help secure the supply chain for these foundational semiconductors that are used in every sector of the U.S. economy," said U.S. Secretary of Commerce Gina Raimondo.
Texas Instruments has one of the largest client bases in the industry as its chips are used in everything from smart phones to cars.
Shares of the company were 1.5% higher in premarket trading.
(Reporting by Deborah Sophia in Bengaluru; Editing by Janane Venkatraman and Shinjini Ganguli)