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Biden administration announces $1.6B for new chip manufacturing plants in Utah, Texas

LEHI — The Biden administration on Friday announced a $1.6 billion investment in Texas Instruments for advanced chip manufacturing plants in Utah and Texas.

Funds from the CHIPS and Science Act — a key plank of President Joe Biden’s policy agenda passed in 2022 — will help fund three fabrication sites for semiconductors, including a new plant in Lehi, where Texas Instruments has already planned to invest $11 billion. The White House announced an additional $3 billion in loans to the company, which Arati Prabhakar, assistant to the president for science and technology, said will facilitate $18 billion in private capital by the end of the decade.

“In Utah, this will be the largest economic investment in the state’s history,” she said on a call with reporters. “These chips are the fundamental building blocks of nearly all electronic devices, and this means that they will be produced at scale on American soil. Together, these projects will create thousands of construction jobs and more than 2,000 manufacturing jobs. That is the future that we’re building with TI.”

The administration announced that Texas Instruments has signed a preliminary term sheet with the U.S. Department of Commerce for the $1.6 billion investment, adding to the more than $30 billion already invested across the country through the CHIPS and Science Act. Prabhakar said the U.S. is projected to produce as much as 28% of the world’s advanced logic chips by 2032, thanks in large part to the federal investment.

“Utah is thrilled that Texas Instruments is expanding its manufacturing presence in the Silicon Slopes, furthering the impact Utahns have on critical semiconductor technology,” Utah Gov. Spencer Cox said. “This investment in semiconductor manufacturing not only creates more jobs, but also brings supply chains back to the United States.”

U.S. Sen. Mitt Romney, R-Utah, said the funding will “enhance Utah’s vital role in our national defense and economic success.”

“I was an original sponsor of the CHIPS and Science Act — which made today’s announcement possible — because in order to compete on the world stage, we must continue to promote innovation, foster scientific talent, and expand research here at home. Texas Instruments’ expanded operations will help make the United States more self-reliant for chips essential to our national security and economy,” Romney said.

Advanced semiconductors have become an increasingly important part of the global supply chain, as everything from cellphones to cars to many appliances rely on them. Shortages of chips during the COVID-19 pandemic and in the years since have snarled supply chains and increased the cost of many goods that rely on them.

Senior administration officials said production at the Lehi facility is expected to begin as early as 2026. Texas Instruments broke ground on the wafer fabrication plant in November, after reaching a deal with the state in February 2023.

“This is more than just new jobs and more than just creating some chips for computers,” Cox said at the groundbreaking. “This is about national security. It’s about supply chains and bringing supply chains back to the United States, away from our adversaries that want to do us harm.”

Laurie E. Locascio, the under secretary of commerce for standards and technology, agreed, telling reporters Texas Instruments is “committed to further its strategic goals,” which include “holding a stable supply of inventory … which will advance U.S. economic security and mitigate those same supply chain vulnerabilities that were brought to light during the pandemic.

“The CHIPS and Science Act is the cornerstone of President Biden’s ‘Investing in America Agenda,’ which has ensured the United States is a magnet for private sector investments in semiconductor manufacturing and innovation,” Locascio said. “Now, there’s much more work to do, but clearly that vision is becoming a reality.”

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Publish date : 2024-08-15 19:14:00

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