US: Chip maker Texas Instruments to receive up to $1.6 billion
Texas Instruments (TI), a semiconductor manufacturer, can expect up to $1.6 billion (around €1.5 billion) in state support in the US. The US government announced a preliminary agreement with the company to this effect. The funds will support the construction of new manufacturing facilities, with plans for two new plants in Texas and one in Utah.
TI specializes in producing common semiconductors found in nearly every type of electronic device. The US aims to become more independent from China in this field. "During the pandemic, the shortage of current and older generation chips has fueled inflation and made our country less secure," said Commerce Secretary Gina Raimondo.
TI's previous plans involved investments of $18 billion over the next decade. The three new plants are expected to create more than 2,000 jobs. The Commerce Department added that these projects would "sensibly support the growing demand for economic and national security applications."
In 2022, the US government established the Chips Act, the legal basis for the multi-billion-dollar funding of domestic semiconductor production. Since then, 16 funding projects with companies have been agreed upon. According to the Commerce Department, the total amount of subsidies so far is $30 billion. Currently, more than 90% of semiconductor production takes place in East Asia, particularly in Taiwan, South Korea, Japan, and China.
TI's decision to build new manufacturing facilities in Texas and Utah is part of an effort to diversify production, moving away from over-reliance on regions like East Asia. Other US companies are also receiving state support to boost domestic semiconductor production.
