Texas Instruments secures up to $1.6 billion in funding for chip-manufacturing plants in Texas and Utah
By Ciara Linnane
The chip maker also expects an estimated $6 billion to $8 billion investment tax credit
Texas Instruments Inc. said Friday it has signed a preliminary agreement with the U.S. Department of Commerce for up to $1.6 billion in funding through the CHIPS and Science Act to support three 300mm semiconductor-wafer-manufacturing plants currently being built in Texas and Utah.
The stock (TXN) was up 1.3% premarket.
The chip maker also expects an estimated $6 billion to $8 billion in an investment tax credit from the U.S. Treasury for the project.
"The proposed direct funding, coupled with the investment tax credit, would help TI provide a geopolitically dependable supply of essential analog and embedded processing semiconductors," the company said in a statement.
The CHIPS Act was signed into law by President Biden in 2022 with the goal of investing almost $53 billion to boost domestic chip production and reduce the reliance of U.S. manufacturers on foreign suppliers, most of whom are based in Asia.
In addition to securing the supply of chips - used in everything from smartphones to cars and medical devices - the legislation aims to create thousands of high-paying jobs.
To date, the Commerce Department has announced more than $30 billion in proposed private sector investments in 23 projects in 15 states, according to a release from last week.
Texas Instruments will receive $10 million in funding for workforce development and expects to create more than 2,000 new IT jobs and thousands of indirect jobs for construction, suppliers and other supporting industries.
The company plans to invest more than $18 billion through 2029, as part of its broader plans for manufacturing.
Two of the three new fabs will be based in Sherman, Texas, with the other in Lehi, Utah. They will be fully powered using renewable electricity.
The stock has gained 18.5% in the year to date, outperforming the S&P 500 SPX, which has gained 16.2%.
-Ciara Linnane
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
08-16-24 0708ET
Copyright (c) 2024 Dow Jones & Company, Inc.-
What’s the Difference Between the CPI and PCE Indexes?
-
Micron Earnings: Great Guidance but Stock Now Looks Fairly Valued
-
August PCE Report Forecasts Show More Good News on Inflation
-
AI Stocks May Be Down, but Don’t Count Them Out
-
4 Stocks to Buy as the Fed Cuts Interest Rates
-
Markets Brief: The Uncertain Path to Neutral Interest Rates
-
What’s Happening in the Markets This Week
-
Where Top Stock Fund Managers Are Looking Next After the Fed Rate Cut
-
Our Top Pick for Investing in US Renewable Energy
-
How to Measure a Stock’s Uncertainty
-
How to Determine Whether a Stock Is Cheap, Expensive, or Fairly Valued
-
Why a Company’s Management and Capital Allocation Matter
-
How to Determine What a Stock Is Worth
-
How to Measure a Company’s Competitive Advantage
-
How to Think Like a Stock Analyst
-
How GLP-1 Drugs Like Ozempic Are Boosting Biopharma Stocks