US authorities will allocate $4.6 billion to Texas Instruments as part of the Chips Act

The US government, through the Department of Commerce, continues to distribute funds allocated to support the national semiconductor industry under the “Chip Act” adopted last year. For the needs of Texas Instruments, which plans to spend $18 billion by 2029 on the construction of three enterprises in the United States, it was decided to allocate $1.6 billion in subsidies and $3 billion in the form of soft loans.

Image source: Texas Instruments

According to the US Department of Commerce, these Texas Instruments projects will create approximately 2,000 jobs in manufacturing and several thousand in the construction industry. In total, the company intends to spend about $40 billion on its projects in Utah and Texas. Two new plants in Texas will be commissioned after 2030, if all goes according to plan. For the US Department of Commerce, priority will be given to those projects whose implementation will be completed before the end of the current decade.

Texas Instruments is one of the oldest players in the American semiconductor industry and has one of the largest customer bases in the world. In addition to non-repayable subsidies and preferential loans, the company expects to receive tax deductions in the amount of $6 to $8 billion. Let us recall that in total the “Chip Law” in the United States provided for the allocation of $39 billion in subsidies for the construction of enterprises, as well as $75 billion in preferential loans. The bulk of these funds have already been formally distributed among recipients; their number has exceeded ten. The remaining funds will be distributed by the end of the year. Representatives of the relevant ministry emphasized that providing assistance to Texas Instruments “will ensure reliable supplies of locally produced semiconductor components that underlie almost all aspects of modern life.”